Rusal Has Yet To Gain Hong Kong Listing OK

"Rusal Has Yet To Gain Hong Kong Listing OK | AboutHK.Com - More Information About HK"

Dow Jones Embattled Russian aluminum producer United Company Rusal is still on track to hold the initial public offering by the end of 2009, despite Hong Kong stock exchange's listing committee postponing its decision on the listing till Dec. 3, people familiar with the matter told Dow Jones Newswires Thursday. Rusal will meet the stock exchange's listing committee again Dec. 3, the people said. They added that the stock exchange needs more time to study all the documents, as the application for the IPO was only submitted last month. IPOs of Rusal's size usually take three months to vet. "It's a sizable IPO and an important one, as it's the first Russian listings in Hong Kong, and so everyone wants to make it seamless", one person said. In the IPO Rusal, controlled by billionaire Oleg Deripaska, hopes to raise as much as $2.5 billion by selling 10% of the company, to reduce its debt burden, according to people close to the company. People added that the company has a "high chance" of getting its IPO approved then and is on track to be floated on the Hong Kong bourse by year's end, as its US$7.4 billion debt structuring is "99% complete." One person added Rusal will make an announcement next week on the debt restructuring. The person also said that the company will start premarketing and the roadshow to potential investors Dec. 7. The company has also applied for a listing in Paris. Russia's state Vneshekonom Bank, or VEB, which bailed out Rusal in late 2008, may buy as much as 3% of the company at the IPO. That would make VEB an "anchor investor," Finance Minister and VEB board member Alexei Kudrin said Wednesday. Apart from VEB, there are also "high quality institutional investors" who have committed to be cornerstone investors on the deal, the person said. He declined to comment on the amount the investors have pledged to take up, noting that allocations have yet to be finalized. Rusal has added Bank of America Merrill Lynch and Nomura Holdings Inc. ( 8604.TO) as underwriters for its deal, along with BOC International Holdings Ltd., Russia VTB Capital, BNP Paribas SA (4507.FR) and Credit Suisse Group (CS), the person said. Goldman Sachs Group Inc. (GS) was dropped as a bookrunner after the investment bank expressed reservations about sponsoring the deal and said it would like to be just an underwriter for it, the person said. An IPO sponsor is responsible for dealing with regulators and coordinating efforts by professional parties like lawyers and accountants, while underwriters drive the sales effort. -By Amy Or and Alexander Kolyandr, Dow Jones Newswires; 852-2832 2335; amy.or@ dowjones.com