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posted on May 11, 11 02:56PM

UPDATE 2-Russia's Intergeo eyes multibillion-dollar IPO

Wed May 11, 2011 5:15pm GMT

* Intergeo IPO will be for about 10 percent stake

* Sees IPO raising C$1 bln to C$5 bln

* IPO planned for end of year in Toronto

* Hires Canadian mining veteran John Lill as CEO

By Pav Jordan and Julie Gordon

TORONTO, May 11 (Reuters) - Intergeo, the Russian copper and nickel company owned by billionaires Mikhail Prokhorov and Maxim Finskiy, hopes to raise several billion dollars in a initial public offering on the Toronto Stock Exchange by the end of the year.

Finskiy, the company's chairman and 20 percent stakeholder, told Reuters in an interview on Wednesday the company would float about 10 percent of its shares in the offering.

"We are planning to bring it to a Toronto listing by the end of the fall, by the end of the year," Finskiy said between meetings with investors in Toronto as part of a two-day visit.

He said the IPO should raise, "definitely over C$1 billion, not over C$5 billion."

Prokhorov, who controls 80 percent of Intergeo, is a self-made Russian billionaire and one of the world's richest men.

Prokhorov is the chairman of Russia's largest gold producer, Polyus Gold (PLZL.MM: Quote), which was formed out of the gold-mining assets of Norilsk Nickel (GMKN.MM: Quote), of which he was part owner and chief executive until 2007.

Finskiy, who divides his time between Russia and the United States, where he has homes in Miami and New York, said the partners hoped to leverage Prokhorov's U.S. contacts to attract top investors.

"He has a personal relationship with many investors in North America and he is the owner of the New Jersey Nets (basketball team) and he is a very recognizable figure in North America, even more than in Europe," said Finskiy.

The company prefers to list in Toronto over New York because, Finskiy said, as Toronto understands mining and mining finance.

MULTIBILLION INVESTMENT PLANS

Prokhorov launched Intergeo in 2008 as an exploration company, and announced plans to invest more than $10 billion developing copper, nickel, molybdenum, titanium and precious metals fields.

Finskiy said Intergeo, a subsidiary of Russia's Onexim group private equity fund, which is also owned by Prokhorov, would use cash from the IPO to fund development of its two main projects in Russia: a sulphide nickel deposit and a nickel, copper and platinum group metals deposit.

He described the former as one of the largest undeveloped sulphide nickel deposits in the world.

Russia is a top global producer of nickel, palladium and platinum.

The company has already invested $300 million in acquisitions and exploration.

"So those are the two giant projects that are the first priority of Intergeo," said Finskiy. "Intergeo will be a large tier producer of copper, nickel and the PGMs (platinum group metals)."

Intergeo could be a producing concern within four to five years, Finskiy said, adding that he has just hired Canadian mining industry veteran John Lill, former chief executive of FNX Mining, to be the company's new CEO.

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