Polymetal looks to raise up to £518m

The Russian precious metals miner Polymetal has increased the amount it hopes to raise with its London stock market listing this year, seeking up to £518m as it eyes a place in the FTSE 100.

The company, which is set to price its shares at the end of this month, set an initial range of £9.10 to £10.35 a share yesterday, putting it on track to achieve a market value of nearly £4bn if it hits the upper end of the range. With that initial range, the miner is looking to raise between £445m and £518m, higher than the £300m it was talking about last month.

The business, which recently posted a 59 per cent jump in third quarter revenues to $374m, is part-owned by the Russian businessmen Vitaly Nesis and Alexander Mamut, who bought the Waterstone's chain from HMV earlier this year. Its inclusion will add to the influence of miners on the movements of the FTSE 100 index of leading shares, which is already home to big diversified mining groups such as Rio Tinto, Xstrata and BHP Billiton, and Glencore, the Swiss commodities trader.

Later this year, Polymetal is expected to be joined by fellow Russian miner Polyus Gold, which is also preparing to make its debut on the London Stock Exchange.