Power grid company MRSK is scheduled to list its shares in London this week, a move it hopes will boost the liquidity of its stock and enable it to raise funds in the future, a company spokesperson said.
The technical listing, in which no money is raised, will see MRSK list 25 percent of its stock as global depositary receipts — the maximum allowed under Russian securities regulations — on Thursday.
The federal government owns a more than 50 percent controlling stake in MRSK, while state-controlled Gazprom has 10 percent.
MRSK was judged by analysts to be the power group worst affected by the government's u-turn on proposed household electricity tariff rises earlier this year. The company is a holding group for several local electricity distribution grids.
Its shares are down 47.5 percent this year, valuing it at about $4 billion, while Russia's RTS Electric Utilities Index is down 29 percent.
The company was expected to receive more share price support from its recent inclusion in the MSCI Russia Index, which is used by emerging market investors worldwide to track Russian shares.
MRSK chief executive Nikolai Shvets said in October the company was preparing to hold a technical London listing of up to 25 percent of its shares in December.
The move was aimed at getting greater investor exposure ahead of a possible privatization after President Dmitry Medvedev said in March it might make sense to further privatize MRSK to boost efficiency in the power sector.
Rival state-controlled grid firm FSK completed the listing of its secondary shares in London at the end of March.
A wave of Russian companies have recently sought premium listings of their shares, with some large enough to seek inclusion in the FTSE-100 Index.
Mining companies Polymetal and Evraz recently started trading as premium companies. Russian potash miner Uralkali has also said it is considering a full stock market listing in London next year.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
