Alexa
  • Directory of Taiwan

Russia's biggest pipemaker announces IPO for early November

Russia's biggest pipemaker announces IPO for early November

OAO TMK, a key pipe supplier to Russia's burgeoning oil and gas industry, said Wednesday that it would hold an initial public offering of its shares on the London Stock Exchange and on Russia's main exchange in early November.
Chief Executive Konstantin Semerkov declined to reveal in a conference call how much of the company would be sold, but said that 70 percent of the shares sold would be listed in London and 30 percent on Moscow's RTS exchange.
Previous media reports have said that TMK's core shareholder, TMK Steel, planned to sell 20 percent of the company's shares.
Analysts have valued the company, which is Russia's biggest steel pipemaker, at between US$4.8 billion (euro3.8 billion) and US$5.3 billion (euro4.2 billion), which Semerkov said was close to the company's own estimates.
He noted that growing demand from the energy sector meant the timing of the IPO was right.
"Our cost production is falling, while sales are rising due to growing demand from oil and gas producers," he was quoted as saying by Dow Jones Newswires. "The need to continue exploration and transportation forces oil and gas companies to raise their spending."
TMK is the latest in a series of Russian companies taking advantage of strong demand from international investors for exposure to Russia's oil-boom economy.


Updated : 2021-05-07 21:26 GMT+08:00