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Federal Grid May Seek German Listing

A trader walking in front of the DAX index curve on the floor of the Frankfurt Stock Exchange, Germany’s largest. Alex Kraus

The Federal Grid Company, the country's electricity distribution monopoly, is seeking to list its shares in Frankfurt to increase trading and attract a wider investor base, two people familiar with the matter said.

The company, which trades on the MICEX and RTS exchanges in Moscow, is planning a secondary listing on the Deutsche Boerse, said the two people, who declined to be identified because the information hasn't been made public.

Roman Kirindassov, head of Deutsche Boerse's representative office in Moscow, declined to comment Wednesday. The German exchange set up a Moscow office in 2007 to boost sales and client relationships in Russia.

Dmitry Gryzunov, a spokesman for Federal Grid, also declined to comment.

Federal Grid, which has a market capitalization equivalent to $14.7 billion, would be the largest Russian company by market value to list on the Frankfurt exchange. The government owns 79.11 percent of the company, also known by its acronym FSK. The state plans to offer a stake as part of its 1.8 trillion ruble ($59 billion) asset-sales program during the next five years.

IBS Group Holding, a Russian software provider, and ZAAB Energy, the holding company of ZAAB Invest, a Russian oil and gas group, are listed in Frankfurt.

The company's shares on the MICEX fell 0.8 percent to 36.7 kopeks at the close in Moscow.

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