Russian rly may seek $4b from units' IPOs
Friday, 22 January 2010
HONG KONG, Jan 21 (Bloomberg): OAO Russian Railways, operator of the world's longest rail network, may seek to raise as much as $4 billion from proposed initial public offerings of two units.
The state-owned company is seeking dual listings of TransContainer and Freight One Co. in Moscow and either London or Hong Kong, Dmitry Novikov, an adviser to the president of Russian Railways, said today while attending a conference in Hong Kong. There are no plans to sell shares in Russian Railways itself, he said.
Emerging markets will produce the biggest increases in IPOs as global sales almost double to $200 billion this year, according to Matthew Johnson, the head of the global-equities syndicate at Barclays Plc in New York.
The listing of Moscow-based United Co Rusal Ltd. in Hong Kong next week may make the city's bourse more attractive to other Russian companies, which have sought sales in London previously.
"Rusal was the first deal, so in fact we need to go through an analysis of this transaction to understand the pros and cons of listing in Hong Kong," said Novikov. "We would be looking for Anglo-Saxon legislation for the transaction. For us, there are two major locations, the UK and Hong Kong."
The share sales of TransContainer may raise $1 billion, and Freight One $2.5 billion to $3 billion, he said, citing preliminary estimates yet to be approved by the company's supervisory board. The company is still conducting an official valuation study and no investment banks have been hired, he said.
The state-owned company is seeking dual listings of TransContainer and Freight One Co. in Moscow and either London or Hong Kong, Dmitry Novikov, an adviser to the president of Russian Railways, said today while attending a conference in Hong Kong. There are no plans to sell shares in Russian Railways itself, he said.
Emerging markets will produce the biggest increases in IPOs as global sales almost double to $200 billion this year, according to Matthew Johnson, the head of the global-equities syndicate at Barclays Plc in New York.
The listing of Moscow-based United Co Rusal Ltd. in Hong Kong next week may make the city's bourse more attractive to other Russian companies, which have sought sales in London previously.
"Rusal was the first deal, so in fact we need to go through an analysis of this transaction to understand the pros and cons of listing in Hong Kong," said Novikov. "We would be looking for Anglo-Saxon legislation for the transaction. For us, there are two major locations, the UK and Hong Kong."
The share sales of TransContainer may raise $1 billion, and Freight One $2.5 billion to $3 billion, he said, citing preliminary estimates yet to be approved by the company's supervisory board. The company is still conducting an official valuation study and no investment banks have been hired, he said.