Russian shipping major Sovcomflot plans to sell 17% stake
Sovcomflot, Russia's largest shipping firm, plans to sell a 15.5 percent -17 percent stake in new shares and raise about $534 million on the Moscow Exchange in an initial public offering (IPO).
As increasing coronavirus cases globally threaten an oil price recovery and reduce risk appetite among investors, Sovcomflot 's IPO comes at a challenging time for the Russian currency. The rouble was trading close to the US dollar's six-month low.
Specializing in the shipping of petroleum and liquefied natural gas, state-owned Sovcomflot has set the IPO price range between 105 and 117 rubles per share, it said on Monday. Pricing is anticipated to take place on Oct 7.
"That range values the company at 250-270 billion roubles ($3.2-3.5 billion) after the IPO and leaves plenty of room - perhaps up to 25% - for the shares to rise after they are listed," said Vladimir Soloviev, an analyst at Promsvyazbank.
As part of its privatization plans, the Russian government, which will remain Sovcomflot's controlling shareholder after the IPO, has considered listing the company for years.
Maritime Business World