NefteTransService is preparing an initial public offering in London that is expected to value the Russian rail freight company at around $2 billion.
NTS, which plans to raise up to $500 million from the share sale, will be the third Russian rail cargo operator to list on the London Stock Exchange alongside Globaltrans and Transcontainer.
The company is Russia’s second-largest freight operator by volume, transporting 72 million tons of cargo, mainly oil, iron ore and coal, in 2012, for a 6 percent market share.
NTS plans to use the proceeds from the IPO, expected in early 2013, to expand its fleet of 61,000 rail wagons. It acquired EvrazTrans, the rail freight unit of Russian steelmaker Evraz, in November.
Globaltrans, Russia’s largest private rail company, which listed in London in 2008, raised an additional $450 million in mid-2012 to finance the acquisition of the rail operations of metals groups, MMK and Metalloinvest.