Russia's flag carrier Aeroflot plans to start trading its depositary receipts in London and New York beginning from the first quarter of 2014, news reports said Wednesday.
An unidentified source in Aeroflot told Prime business news agency that the company planned to submit a request permitting transfer of its depositary receipts to the U.S. Securities and Exchange Commission, or SEC, within the next few days.
The SEC usually takes a week to consider such requests, the source said, but due to Christmas holidays it is likely that the decision will be made at the beginning of next year.
Earlier in December, Aeroflot, which is 51 percent state owned, received permission from the Central Bank to have about 25 percent of its shares traded abroad.
A permission to trade depositary receipts does not mean Aeroflot will get a direct listing on foreign stock exchanges. It is merely an instrument for foreign investors, who have limitations on buying shares in rubles, to do so through a depositary bank.
For these operations Aeroflot chose Deutsche Bank Trust Company Americas.
The Moscow Stock Exchange will remain the main trading platform for Aeroflot shares, 30 percent of which are free-floated.
However, earlier this year Aeroflot confirmed its plans to have a listing on the New York Stock Exchange.
Aeroflot executives have said that the company is underrated and access to foreign investors through depositary receipts may increase the value of its shares prior to a planned float of a share of the state's stake.
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.
