New York Exchange courts Russian companies

Updated 01 December 2012

New York Exchange courts Russian companies

MOSCOW: The New York Stock Exchange hopes less stringent rules will help persuade several Russian companies to raise money on its markets next year, taking business from arch-rival London.
NYSE Euronext's head of international listings, Albert Ganyushin, said legislation that makes it easier for smaller firms to obtain a stock market quote and less onerous requirements for overseas issuers could make New York more appealing. "I would not be surprised to see several ... potential IPOs (initial public offerings) in Moscow and New York taking place in the next 12 months," Ganyushin told Reuters in an interview on Thursday.
He was speaking a day after telecoms firm MegaFon raised $1.7 billion in London, the largest market debut by a Russian company since aluminum producer Rusal's 2010 Hong Kong float.
Russian companies have for years preferred London over New York as the venue for their overseas listings, attracted by its close geographical location and less stringent disclosure and audit rules.
London has more than 50 Russian companies on its main market compared with only a handful in New York.
Mobile phone operator Vimpelcom floated on the NYSE in 1996 followed by rival MTS in 2000. Steel and coal miner Mechel came to market in 2004. Epam Systems Inc, a US-based IT services provider with operations in Russia, listed earlier this year.
The NYSE has invited around 50 US investors to an event with Russian First Deputy Prime Minister Igor Shuvalov and Russian companies and funds at its Wall Street address next Monday.
US investors have lost billions of dollars on US-listed Chinese companies in numerous accounting scandals and drumming up interest in other emerging-market firms could be a tough task.

Russia's reputation as being a country rife with corruption and red tape is another hurdle to be overcome.
The 2002 Sarbanes-Oxley Act, introduced after the Enron and WorldCom scandals, sought to tighten auditing but resulted in scaring many companies away from a New York listing due to the increased burden of compliance.
The costs of preparing an IPO could reach $500,000 or more according to a survey by accountants PwC. Russian telecoms company Rostelecom in 2009 delisted from the NYSE, reportedly citing the high costs of meeting the rules.
But under the Jobs Act signed this year, it will be easier for emerging-growth companies with less than $1 billion in revenue to raise capital, because they will be exempt from an outside audit of internal controls for up to five years.
Ganyushin said the Jobs Act comes on top of other changes that help foreign private issuers.
"For the last three years it's much easier to list in the US as a foreign company than a US company - you can follow your home corporate governance practices, you don't have to have an independent board, you don't have to report in US GAAP," he said.
The NYSE is also an attractive venue due to higher valuations achieved for issuers and lower risks of executing IPOs, he argues.
Ganyushin sees the NYSE as a complementary venue to Moscow and is encouraging companies to list on both markets.
He hopes New York could attract some of the privatizations the Russian government is planning. Shipping firm Sovcomflot is one slated for 2013.
"The global shipping sector is based in New York," said Ganyushin, adding that the company would fit well there, while declining to comment specifically on Sovcomflot's plans.

Saudi minister Al-Falih says Aramco IPO likely in 2019

Updated 25 May 2018

Saudi minister Al-Falih says Aramco IPO likely in 2019

  • Energy Minister Khalid Al-Falih: “We are ready, the company (Saudi Aramco) essentially has ticked all the boxes. We’re simply waiting for a market readiness for the IPO.”
  • Khalid Al-Falih: “Most likely it will be in 2019 but we will not know until the announcement has been made. All I could say is stay tuned.”

RIYADH: Saudi Arabia is most likely to hold the initial public offering (IPO) of oil giant Aramco in 2019, Energy Minister Khalid Al-Falih said on Friday, confirming a delay from the initial plan to list the company this year.

“The timing I think will depend on the readiness of the market, rather than the readiness of the company or the readiness of Saudi Arabia,” Khalid Al-Falih, who’s also the company’s chairman, said at the St. Petersburg International Economic Forum in Russia on Friday.

“We are ready, the company essentially has ticked all the boxes,” he said. “We’re simply waiting for a market readiness for the IPO.”

For almost two years, Saudi officials said the IPO was “on track, on time” for the second half of 2018. But for the first time in March they suggested it could be delayed until 2019.

“Most likely it will be in 2019 but we will not know until the announcement has been made,” Al-Falih said. “All I could say is stay tuned.”

The Aramco IPO would be a once-in-a-generation event for financial markets. Saudi officials said they hope to raise a record $100 billion by selling a 5 percent stake, valuing the company at more than $2 trillion and dwarfing the $25 billion raised by Chinese retailer Alibaba Group Holding Ltd. in 2014.