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Articles & publications
17.06.2010
Rostelecom expects to go public after 2011ITAR-TASS
Rostelecom expects to launch an initial primary offering (IPO) after 2011. This news was announced today by the general director of Svyazinvest, Evgeny Yurchenko. According to Mr. Yurchenko, the state will gain more than a 50% equity stake in the merged company as a result of the reorganization of Svyazinvest and the consolidation of the holding’s RTOs.
“Roughly speaking, the size of this stake will hover in the range between 54 and 60%”, Mr. Yurchenko claimed.
”The IPO should be held after 2011”, he went on to say, noting that about 10% should be placed in free float during the secondary offering. The holding’s CEO also noted that three platforms are currently under consideration: the London, Frankfurt and Hong Kong stock exchanges.
The main purpose of the IPO is to generate profit from the difference between the sale of authorized shares and capital invested into the joint stock company. The IPO is designed to boost the company’s liquidity, and to protect it against a hostile takeover.
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