* IPO price range between HK$2.20-$3.00 per share
* Values IRC at a marketcap of $962 mln-$1.3 bln preshoe
* Cornerstones include private equity GEMS and CEF
* Bookbuilding runs from Sept 21-Oct 6
(Adds details, cornerstones and background)
HONG KONG, Sept 21 (Reuters) - IRC Ltd, the non-precious
metals unit of London listed gold miner Petropavlovsk Plc
The initial public offering, bookbuilding between Sept 21 and Oct. 6, values the iron ore operation at a market value of between $962 million and $1.3 billion, above the $860 million expected by J.P. Morgan Cazenove analysts.
Petropavlovsk (POG) shares have risen more than five percent since the Russian miner announced on Sept 10 it would proceed with the initial public offering of IRC to bring the division closer to its booming Asian client base.
Private equity firm General Enterprise Management Services (GEMS) and CEF, a joint venture between Cheung Kong Holdings <0001.HK> and the Canadian Imperial Bank of Commerce, have agreed to subscribe to $60 million worth of IRC shares.
Hong Kong-headquartered IRC, which is expected to trade under the symbol 1029 <1029.HK> on Oct 14, comprises the former Aricom assets that POG acquired in April 2009 in an all-paper deal equivalent to $455 million. The assets came with $230 million of net cash on Aricom's balance sheet, giving a net acquisition value of $220 million.
IRC, which focuses on exploring, developing and operating industrial commodities projects in the Russian Far East and northeastern China, would offer 1.325 billion shares between HK$2.20 and HK$3.00 each, it said.
Including a greenshoe option, the total number of shares on offer amounts to 1.523 billion, implying an IPO size of up to HK$4.57 billion ($588 million).
Of the shares on offer, 80.8 percent are new shares and 19.2 percent are existing shares.
BOC International, Bank of America Merrill Lynch