Russia’s RussNeft to close IPO book in Nov, receive $450–500 mln

MOSCOW, Nov 1 (PRIME) -- Russian oil company RussNeft plans to close the bidding book for an initial public offering (IPO) of 10% of its shares until the end of November to raise U.S. $450–500 million, Alexander Lukin, chairman of the management board of B&N Bank, told reporters on Tuesday.

“Premarketing and bookbuilding will be held from November 20–30 so that we close the bidding book until the end of November,” Lukoil said adding that MDM Bank, which is going through a merger with B&N Bank, will coordinate bookbulding.

“The sum will depend on valuation of investment bankers, but it is clear that the range is $450–500 million.”

But he did not disclose the amount of shares that will be offered, although Mikhail Gutseriyev, chairman of RussNeft’s board of directors, said in July that the company will float 10% on the Moscow Exchange.

“We have no figures before us. The figure (of 10%) was named on the basis of a combined number of shares. But the company has both preferred and common shares, so I will not comment on the matter,” Lukin said.

Most demand for the shares is coming from Russian institutional investors, but some demand also comes from Switzerland, he said, adding that there is no agreement on participation of one of the current company shareholders, oil trader Glencore. “We will see whether they have bought a stake or not in the closed bidding book,” he said.

He also said that two Russia’s largest banks – VTB and Sberbank – were preliminary chosen as “global market makers”.

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