Russian IPOs add impetus to thawing listings market

Two London listings of Russian firms were announced on Monday, adding further cheer to the new listings market boosted by Direct Line's intention to float on Friday.

London Stock Exchange: New listings
London Stock Exchange: New listings

Yesterday saw the Russian government announce it was to press ahead with the sale of its stake in the country’s largest bank, Sberbank. The Russain state’s stake in Europe’s third largest bank is estimated to be worth around US$5bn (£3.32bn) and the sell-off is a key component of its privatisation programme.

FTI Consulting has been mandated to handle PR around the listing. The agency has an existing relationship with Sberbank. The FTI team consists of Paul Marriott and Neil Doyle in London and Oleg Leonov and Maria Shiryaevskaya in Moscow

Shares are to be listed in London and Moscow and will leave the Russian Central Bank with 50 per cent of equity plus one share.

Meanwhile, M:Communications has won a mandate to handle PR for the London listing of Russian Healthcare provider MD Medical Group. The private healthcare firm announced yesterday it is seeking to raise around US$150m via a London listing next month.

The two listings indicate a return of appetite from Russian firms to float in London after a number of listings were pulled earlier this year. In addition to the announced IPOs, Russian mobile phone operator MegaFon and lender Promsvyazbank have also taken steps this month to seek London listings.

The new listings market in the UK received a shot in the arm on Friday when RBS kicked off plans to sell 25 per cent or more of its stake in insurance arm Direct Line Group.

PRWeek previously revealed that Brunswick had been mandated to work on the listing, which could value Direct Line Group at up to £3bn.

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