Sibur CEO sees no incentive for IPO ahead of ZapSibNeftekhim launch

MOSCOW, Feb 21 (PRIME) -- There are no incentives for Russian petrochemical holding Sibur to carry out an initial public offering (IPO) before the launch of the ZapSibNeftekhim petrochemical facility or during the launch, Sibur CEO Dmitry Konov told reporters on Thursday.

“If you want my opinion, I don’t think that the shareholders of the company currently have any incentives for an IPO before ZapSibNeftekhim…an incentive for the large shareholders to make a share placement simultaneously with the launch of ZapSibNeftekhim has no sense, in my view,” he said.

The project envisages construction of a pyrolysis unit with an annual capacity of 1.5 million tonnes of ethylene, 500,000 tonnes of propylene and 100,000 tonnes of butane-butylene, as well as of units for production of various types of polyethylene and polypropylene with a total capacity of 2 million tonnes annually. Construction will be completed in 2019.

Gas producer Novatek CEO Leonid Mikhelson owns a 48.5% stake in Sibur, including 14.4% in trust management of Gazprombank and 34.08% owned by Mikhelson’s Trust. Gennady Timchenko holds 17% in Sibur, the executives about 14.5%, China’s Sinopec 10% and the Silk Road Fund 10%.

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