UPDATE: Russia’s RussNeft says sells shares at 550 rbl/shr at IPO

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MOSCOW, Nov 25 (PRIME) -- Russian oil company RussNeft has sold shares under its initial public offering (IPO) at a price of 550 rubles per share, the company said in a statement on Friday, confirming an earlier report by Bloomberg.

Market capitalization of common shares at the offer price amounted to 161.8 billion rubles. The offer amounted to 58.822 million shares, or 32.4 billion rubles at the offer price and accounts for 20% of common shares, or 15% of capital.

All settlements and secondary trading at the Moscow Exchange will take place on Friday.

According to RussNeft’s materials, Belyrian Holdings of the Gutseriyev family and its affiliates used to own 75% of the charter capital in the company, or 67% of the common stock, while the remaining part was owned by oil trader Glencore Plc and its affiliates.

Belyrian Holdings announced the sale of 15% earlier this year.

Ðead of the Moscow Exchange Alexander Afanasyev said that individuals submitted more than 2,000 bids during RussNeft’s IPO.

“The thing that makes the bourse happy is that the tranche has happened with a significant over-subscription, and a large array of investors participated in it. Individuals submitted more than 2,000 bids, meaning that this company has instantly become popular among a wide range of people, including Russian citizens,” he said.

(64.6279 rubles – U.S. $1)

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