Russneft Plans IPO

Russneft  Plans IPORussneft  Plans IPO

Russia’s Russneft is considering an initial public offering to sell up to 10% of the midsized oil producer, Interfax news agency reported on Friday citing company boss, Mikhail Gutseriyev. That is smaller than a sale of 25% and 49% of the company flagged by the company earlier this month, Reuters reported. Gutseriyev, who is the majority owner in Russneft, said the IPO on the Moscow Stock Exchange would be conducted by a Russian bank. Russneft’s total debt stood at around $2.5 billion at the end of 2015, including a $2 billion loan from VTB, according to Moody’s Investors Service. Gutseriyev was quoted as saying by Interfax that the company’s net debt stood at $1.275 billion. Russneft, which produced 7.4 million tons of oil (150,000 barrels per day) last year, was previously reported to be willing to sell a stake of up to 49%, comprising new shares, in an initial public offering, depending on demand.