Sovcomflot, the Russian tanker giant, will push ahead with a listing as early as next month, Reuters is reporting. The state run firm will try to entice a number of small-stake investors rather than a strategic buyer, the newswire reports.
A Sovcomflot IPO has been on the cards for a long time as part of president Vladimir Putin’s privatisation programme to restore state coffers in the wake of the protracted downturn in the price of oil.
The Economy Ministry, which is overseeing the privatisation of the line, said by email to Reuters: “There is a high interest seen from both Russian and foreign institutional investors.”
The 25% stake sale is anticipated to raise more than $500m.
Sberbank CIB and VTB Capital, investment banking units of Russia’s two biggest and state-controlled banks, are arranging the deal.