WGC-6, created in 2005, is the second largest of the wholesale generating companies in terms of installed capacity that were formed during the restructuring of Russia's power system. The company, which combines six hydropower plants, has a charter capital of 23.8 billion rubles (about $860 million). Russian electricity monopoly Unified Energy System holds 100% of the company's stock.
"The UES board of directors approved the WGC-6 IPO," Director General Valentin Sanko said. "We were told to conduct an IPO either in the fourth quarter of 2007 or first quarter of 2008, depending on market situation."
"The most important is that we have agreed on the volume of additional issue at 24 billion rubles (about $896.5 million)," he said.
Sanko also said the company planned to issue bonds in the amount of 8 billion rubles (about $300 million).
The additional issue of shares and bonds will help the six hydropower generating companies within WGC-6 convert to a single share, and to implement an investment program until 2010, the official said.
