Deripaska plans new $1.5bn float in Hong Kong

Oleg Deripaska is set to launch a $1.5bn (£950m) stock market flotation of his electric power business, despite the recent collapse of several high profile flotations.

The Russian tycoon is defying the market trend – which saw three listings pulled last week as a result of falling values – as he tries to raise cash to strengthen his ailing empire. Retail chain New Look, Merlin Entertainments and high-tech leisure business Travelport all canned London listings last week.

Mr Deripaska's holding vehicle, EN+, listed Rusal, his aluminium company, in Hong Kong last month, but the float disappointed with shares falling almost 20 per cent. The decision not to float in London, considered the home of world mining finance, was seen as a snub to the City.

EN+ is now floating its power business, which provides energy to Rusal's mines, and is again courting London bankers for a Hong Kong listing. Deutsche is understood to have grabbed one of the global co-ordinator roles to float the assets in the first half of this year. A number of other banks, including Credit Suisse and Bank of America Merrill Lynch, are said to be still vying for more junior bookrunner positions. The flotation should raise up to $1.5bn, a source said.

EN+ is also trying to raise cash through a Hong Kong listing of Strikeforce Mining & Resources. This was previously planned for late 2008, but EN+ decided against the move because of the economic downturn.

The cancellation of the flotations last week prompted speculation that more will be postponed over the coming weeks. One that looks likely to survive is Promethean, the school whiteboards technology firm, which is likely to confirm a £500m London listing this week.

In other mining news, initial bids for Anglo American's zinc business, believed to be worth up to $800m, are due by the end of the month. Private equity giants Apollo and First Reserve are thought to be mulling bids, with the latter the more interested.

Industry observers are waiting to see if Xstrata, the hugely acquisitive Swiss-based group, makes a move. Its chief executive, Mick Davis, surprised investors last week by suggesting that growth would come through developing existing assets.

Anglo, a Ftse 100 constituent, will announce its full-year results on Friday. These are the first annual figures it has released since its chief executive, Cynthia Carroll, announced a restructuring of the business last year.

BHP Billiton and Rio Tinto announced results last week. BHP's revenue fell 17.5 per cent in the six months to 31 December on the same period in 2008. Rio's full year revenue was down more than $14bn on 2008 to $44bn.