Russneft, the Russian oil producer in which Glencore holds a 25 per cent stake, is to float a 15 per cent stake on the Moscow Exchange before the end of the year, the company said on Monday.
Russneft, which is Russia’s seventh-largest oil producer by volume with an output of about 150,000 barrels a day last year, said it had appointed VTB Capital and Sberbank CIB as global coordinators of its IPO, with brokerages Aton and BCS as joint bookrunners and EFG Asset Management and IT Invest as co-lead managers, writes Jack Farchy in Moscow.
It said that both Glencore and Mikhail Gutseriev, whose family holding company owns the remaining 75 per cent of the company, had agreed to a 180-day restriction on selling their shares.
Mr Gutseriev, whose net worth is estimated by Forbes at $6.3bn, said that Russneft was the largest Russian oil company that did not have a market listing:
“In the last few years Russneft has been able to significantly optimise its portfolio of assets, to put in place a programme to improve operational efficiency and to optimise its capital structure, allowing it to significantly reduce its debt burden.
“Listing shares on the Moscow Exchange will open up access to the equity market for the company and will enhance the company’s transparency and corporate governance, as well as its attractiveness to investors.
“We hope that the IPO of Russneft will interest a wide range of investors, offering a unique opportunity to invest in a growing independent oil and gas company.”
This summer, Mr Gutseriev said that he was considering floating up to 10 per cent of Russneft’s shares and estimated the company could be valued at $4bn-$5bn.