“RUSSNEFT” TO PLACE 20% OF ITS ORDINARY SHARES IN IPO
Moscow. During IPO “RussNeft” is going to float 20% of its ordinary shares, which amounts to 15% of equity.
As reported in “RussNeft” press release, the offering is planned in the 4Q of 2016, and includes share sales through the infrastructure of Moscow Stock Exchange. The Company expects that by the time of offering, the shares would be listed in the First Level Quotation List (the highest level) of Moscow Stock Exchange.
“RussNeft” and its shareholder Belyrian Holdings Limited, to which the Gutseriev family members are the beneficial owners, intend to commit to a lock-up period of 180 days (with standard exceptions) after the offering date.
Glencore plc has already consented to 180-day market standoff period for share sale starting from the moment of signing the relevant agreement on October 31, 2016.
VTB Capital and Sberbank CIB would be the joint global coordinators and book-runners of the offering. Anton and BKS act as joint book-runners, while EFG Asset Management and IK “IT Invest” act as co-lead managers. LECAP serves as a legal counsel during IPO.
“Unlike privatized companies, “RussNeft” has been developing naturally, having built significant resource base of over 200 million tons. For the last few years, “RussNeft” managed to optimize its asset portfolio, launch programme of enhancing operational effectiveness and optimize capital structure, which helped notably reduce debt burden“, the release writes citing “RussNeft” owner Mikhail Gutseriev.
The assets of the Company are located in West Siberia, Volga Ural Petroleum and Gas Province, Central Siberia and Azerbaijan. Oil production in 2015 made up 7.9 mln tons including Azerbaijan assets. In 2017-2019 the Company intends to boost the production up to 10 million tons.
According to the information submitted by the company, 75% of its equity (67% of the ordinary shares) belongs to Belyrian Holdings Limited and its affiliates, to which the Gutseriev family is the beneficial owner. Another 25% of the equity (33% ordinary shares) is owned by Glencore plc and its subsidiaries.