OGK-2, established in 2005 as part of the restructuring of Russia's electric power sector, operates five hydropower plants in different Russian regions. The company intends to spend IPO proceeds on investment projects aimed at building and modernizing its generating assets, the company's press office said.
"OGK-2 intends to hold a global offering of newly issued ordinary shares and Global Depositary Receipts (GDRs) among international institutional investors outside Russia," the company said in a statement.
The generating company currently has charter capital of 26.5 billion rubles (about $1 billiion). Russia's electricity monopoly Unified Energy System (UES) holds an 80.9% stake in the power generator. After the IPO, UES will retain a controlling interest in the company.
OGK-2 earlier said it planned to hold an IPO to raise 21 billion rubles (about $825 million) in mid-2007, and place a 6 billion ruble ($235 million) bond issue and obtain loans.
