En+ Group, which manages Russian tycoon Oleg Deripaska's aluminium and hydropower businesses, is planning an initial public share offering (IPO) in London and Moscow.

It has not said how much of its equity it plans to float but has said it hopes to raise $1.5 billion from the offering.

The listing will be the first major IPO of a Russian company in London since 2014, when the West imposed sanctions on Russia over its actions in Ukraine, and is seen as a test of investor appetite for Russian assets.

En+ and VTB Capital declined to comment.

Sberbank SIB, another of the coordinators, has separately prepared several different scenarios to investors that would determine how it values En+, according to two financial market sources.

The sources told Reuters that the scenarios outlined suggested Sberbank CIB was leaning toward a fundamental value of En+ of around $10 billion.

However, Anton Malkov, Sberbank CIB managing Director, told Reuters that the bank had not set a definite value on the company.

"The assumption that Sberbank CIB is valuing the company at around $10 billion is incorrect," he said.

"The base amount of the transaction totaling $1 billion has been recorded, while it is the market that will determine the equivalent in terms of the percentage of the charter capital," he added.

The base amount of the deal mentioned by Malkov does not include Singapore's AnAn Group, a strategic partner of China's CEFC, which agreed to purchase global depository receipts (GDRs) during the IPO for $500 million.

The IPO will be split between new and existing shares. 

Along with VTB Capital and Sberbank SIB, other global coordinators and bookrunners for the deal include Citigroup, Credit Suisse, JP Morgan and Merrill Lynch.

BMO Capital Markets, Gazprombank, Societe Generale and UBS are acting as joint bookrunners, while Atonline is acting as MOEX bookrunner of the offering.

(Reporting by Olga Popova, Anastasia Lyrchikova and Polina Devitt; Writing by Polina Devitt; Editing by Katya Golubkova and Susan Fenton)