Russia's TMK prepares IPO for US division

The pipeline maker is seeking to capitalise on a profit recovery in its North American operations, driven by the upturn in the shale sector

TMK, the world's second-largest maker of steel pipes for the oil and gas industry, is considering an initial public offering (IPO) of its US division of its assets. Russian billionaire Dmitry Pumpyansky, who controls TMK, told investors at a capital markets day in London in late October that he isn't ruling out a listing or a sale, as the company continues to deleverage. The US unit, TMK IPSCO, began contributing to earnings before interest, tax, depreciation and amortisation (Ebitda) in the first quarter of this year after seven quarters in the red, helped by a strong recovery in shale drilling in North America. The US division, which saw its earnings double in the second quarter, is helpin