TMK, the Russian oil and gas pipemaker, will raise more than $1 billion (£530m) from floating in London and Moscow at a price at the top end of expectations.

Strong demand saw the group's initial public offering oversubscribed 19 times and led the stock to be priced at the top of an indicative range of between $4.60 and $5.40 a share.

The move gives TMK a market capitalisation of $4.7 billion (£2.5bn). TMK’s free float will be around 23 per cent if shares issued under an over-allotment option, triggered by strong demand, and to employees are included.

The company, which will be listed on the London Stock Exchange and the Russian Trading System, said global depositary receipts to be traded in London, representing four shares, were valued at $21.60 each.

Chairman Dmitriy Pumpyanskiy, who holds two thirds of TMK's capital, said: "We are delighted with the strong levels of interest and participation in the offering from a broad range of investors. We are looking forward to the next stage of development of TMK as a public company."

TMK has benefited from the renovation of Russia's gas and oil pipelines as the country emerged as a leading player in the world energy markets. The second largest pipemaker in the world, it posted first-half net profits of $229 million on sales of $1.57 billion.

Credit Suisse, Dresdner Kleinwort and Renaissance Capital are acting as joint global co-ordinators.

News of the TMK float followed reports that Alexei Mordashov’s plans to list his Russia-based steelmaker Severstal on the London Stock Exchange could be delayed by problems in appointing a non-executive chairman.

The company, which supplies the majority of steel to Russia’s car industry, said yesterday that it was on course to join the London market within three weeks after outlining the price range for its forthcoming initial public offering.

The group, which supplies the majority of steel to Russia’s car industry, said that it would price its shares and global depositary receipts at between $11.0 and $13.5 each.

City sources said that the range would enable the group to raise between $1 billion and $1.5 billion (£529 million to £822 million) of fresh capital. Those figures conflicted with comments made this month by Mr Mordashov, who said that the group planned to raise up to $1.72 billion.

SeverStal, which was privatised in 1994, is being advised by Citigroup, Deutsche Bank and UBS.

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