October 13, 2008

Rusal may shift IPO from London to HK – Report

The Financial Times reported that United Company Rusal is considering shifting its USD 9 billion plus initial public offering from the London Stock Exchange to Hong Kong amid souring relations between the UK and Russia and proposed tougher listing rules in Britain.

FT quoted a senior executive at Basic Element, the holding company of businessman Oleg Deripaska which owns a 66% stake in Rusal, as saying that “There is a 95% chance" the company will now list in Hong Kong and not in London.

FT quoted the executive as saying that investors in Hong Kong are more hungry" for Russian shares than those in London. He added tougher listing regulations on the LSE would be another reason.

RusAl was formed in March 2007 with the merger of Deripaska's Russian Aluminum, domestic rival SUAL and the alumina assets of Swiss trader Glencore. RusAl, the world's top primary aluminum producer, considered listing in London toward the end of last year before delaying plans because of a US led downturn in financial markets.