Russian state oil firm Rosneft said on Monday it would go ahead with its $11 billion initial public offering, potentially the world's fifth biggest, despite falling stocks in emerging markets and litigation risks.
Rosneft, Russia's No 3 oil firm, said it had agreed with banks involved in the IPO to value the firm at $60 billion to $80 billion, or up to 33 percent more than the market value of Russia's No 1 oil firm, LUKOIL. Those valuations imply between 13 and 19 percent of Rosneft would be floated.
"We see great interest in the transaction and have already received requests for a substantial share of the offering, including from several large strategic players," Rosneft's Chief Executive Sergei Bogdanchikov said in a statement. Bankers say the placement could take place on July 14, days before Russia hosts a summit meeting of the G8 leading nations, as the Kremlin wants to present the IPO as its contribution to global energy security.
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