Lukoil to list in Hong Kong by year-end
Russia's No2 oil producer Lukoil plans a secondary listing in Hong Kong within a year, firm executive said
Hong Kong Russia's No2 oil producer Lukoil plans a secondary listing in Hong Kong within a year, a company executive said Tuesday, as it seeks to attract Asian investors.
The listing would take place through the listing of existing shares worth more than $1 billion (Dh3.67 billion) obtained through buybacks, Leonid Fedun, vice-president of the company, said.
He said Lukoil was in final talks to hire China International Capital Corp (CICC) and Renaissance Capital to handle the deal.
The company was also considering listing in Shanghai when conditions matured, he added. Lukoil would follow in the footsteps of US luxury handbag maker Coach Inc in choosing a rare method called "listing by introduction" to tap Hong Kong investors.
Some bankers have dubbed listing without issuance of new shares an expensive marketing exercise. For companies looking to increase their profile among Asian investors a secondary listing or listing by introduction in Hong Kong may be less expensive than an IPO, but because there is no new issuance of stock, trading volumes tend to be thin, limiting their appeal.
