ALROSA shares are expected to open trading between RUB 35 and RUB 38

ALROSA - the largest diamond mining company by volume, shares are expected to open trading between RUB 35 and RUB 38, or about $1.04 to $1.18, when its public offering takes place on October 28. The listing in that range would value the company at between $8 billion (RUB 258.42 billion) and $8.7 billion (RUB 280.57 billion).

Ilya Yuzhanov, ALROSA’s chairman, said the board intends to recommend dividend payments of 35 percent of net profit beginning with 2013 earnings. In the listing, ALROSA is offering 155,547,593 shares held by the Russian Federation, representing 7 percent of the company’s total and another 7 percent held by the Republic of Yakutia, and 150,237,555 shares, or 2 percent, held by a subsidiary of ALROSA. The company recently said it would use the proceeds of the sale to repay existing debt.