Moscow. 26 Nov. NK “RussNeft” at the end of the year, decided to remind the Russian market that such a large IPO Belyrian Holdings Limited and its subsidiary companies, the beneficial owners of which are members of the family Gutseriev, sold on the Moscow stock exchange 20% of the ordinary shares of the company (15% of the share capital), to gain for them of 32.4 billion rubles.
The placement of “RussNeft” – the first major IPO in the Russian oil industry over the last 10 years, the previous great accommodation (the extent of which, however, were substantially more seriously) on the stock exchange held in 2006 “Rosneft”.
Mikhail Gutseriev, speaking on Friday on the Moscow exchange, said that the road of the company to the stock exchange ran including “in Moscow’s maze of officials, the interior Ministry, the Prosecutor’s office”. Of great interest to the company with a difficult fate showed retail investors, but their allocations are insufficient to provide accommodation for tens of billions of rubles. In the end, the main buyers of shares of “RussNeft” became the Russian institutional investors, whose names were not disclosed.
A lot of “physicists” and no NPF
The shares of “RussNeft” was placed at a price of 550 rubles for one security, the results of IPO capitalisation of the company amounted to the 161.8 billion. Collecting applications from investors was held from 18 to 24 November. The initial range, within which bids had been received, was 490-600 RUB per share. But on the day of closing of the order book, the company reported that it narrowed down to RUB 540-600 per share.
Sold the shares of “RussNeft” Belyrian Holdings Limited and its subsidiary committed to the ban on new releases and sale of shares for 180 days after the proposal. According to the results of IPO the family members Gutseriev will own 60% of the share capital (47% of the ordinary shares) of the company.
The other shareholder of the company is Glencore plc – their actions, though not sold, but also agreed to a 180-day ban on the sale of the shares. Glencore and its subsidiary owns 25% of the share capital (33% of the ordinary shares).
“VTB Capital” and Sberbank CIB acted as joint global coordinators and joint bookrunners for the offer, also on a deal worked Aton and BCS.
The demand for the company’s shares exceeded supply by more than 30%. “There was a total of more than 2 thousand applications, the vast majority of them came from retail investors, while from the point of view of the amount of their share of demand accounted for about 10%, the rest is institutional demand”, – told reporters the Director of the office of the capital markets “VTB Capital” Boris Kvasov. Institutional demand was mainly from Russia, foreign investors in the book were also present, but their proportion was small, he said.
Foreign investors were, in particular, China. “One Fund, which is – as we understand – Chinese investors participated in the IPO”, – said Vahram Mirakyan, Director General of the financial group Safmar, which manages assets of major shareholders of the oil company.
The Deputy Chairman of the Bank and someone else
“Interfax” has interviewed several major Russian criminal code, but they are in the placement of “RussNeft” was not involved. Among the factors which the purchase of shares of the company seemed unattractive to them, call control is still high, in their opinion, the ratio of net debt/EBITDA of the company and a low probability of payment of dividends on ordinary shares in the medium term.
Did not participate in the placement of “RussNeft” non-state pension funds (NPF). Now the shares of “RussNeft” are included in the highest quotation list of the Moscow stock exchange. If the shares of the company at the same time were included in calculation base of MICEX index, private pension funds could invest up to 40% of the portfolio of pension savings. The shares, which are included only in the highest quotation list, are assets with a high degree of risk and have set a limit of 10% of the volume of pension savings. In this limit includes bonds with a low rating, with a variable coupon and mortgage-backed securities.
“The NPF under the law are unable to participate because of investigatii OPS (mandatory pension insurance) is not provided for the purchase of the asset class. If you look at the assets that are now in APF, a 10% limit on paper all clogged and no way to buy these funds,” – said the Deputy Chairman of the management Board of the Bank Alexander Lukin.
The lack of applications from the NPF in the book was confirmed by one of the official organizers of placing are “VTB Capital”.
But the IPO was attended by the employees of the Bank, so that the market now knows the name of at least one investor. “Many bought. I know people who participated. A good asset, and I participated in that IPO. No one asked for. We had a offer for all customers, including employees. The Bank was made for promotion for all customers who bought the shares (“RussNeft”) through our infrastructure, the Commission for the brokerage service 100. Symbolically,” – said Alexander Lukin.
“RussNeft” was created by Michael Gutseriev in the fall of 2002 after retiring from the state “Slavneft”, a majority of which in the framework of privatization bought chipped “TNK-BP” and “Sibneft”. About to hold an IPO of RussNeft, Mr. Gutseriev was thinking back in 2006. However, in 2006-2007 against the businessman was prosecuted with charges of illegal entrepreneurship and tax evasion, with the result that he left Russia for London. “RussNeft” in the absence of its founder came under the operational control of “basic element” Oleg Deripaska, but his company has never officially became: did not work to persuade the Russian authorities to give permission for the transaction. In 2010, Gutseriev returned to Russia and returned RussNeft under control.
The path of “RussNeft” to the public location of the owner of the company at the ceremony of the opening of trading on the Moscow stock exchange compared with the title of the movie “Long road in the dunes”, noting at the same time, as a songwriter, “luxury music Pauls” in this film. “There is one Baltic film called “Long road to dunes”. The older generation remember him. The long road was at the “RussNeft” for the IPO. Just not in the dunes, and at the maze of officials, the interior Ministry, prosecutors, business and the Moscow market in the streets of Moscow”, – he said at the ceremony.
“We were planning to do an IPO in 2006 and after that, actually. But you remember the events of 2007, and in 2010 a return. Production was 16 million tons, when I left and when I came to USD 11.8 million tons. Had to work 5 years, and mining again became 16 million tons, as we originally meant for the IPO. Because of this long drive part of the assets divided. Today the new stage of revival, birth, the germ of the market company. For I believe that only the exchange is the real value of the company is its openness, purity, where do you mean, nothing can hide, where you have to report where managers are not shareholders, but also managers responsible for the cleanliness of the company”, – said the founder of “RussNeft”.
Expectations and reality
Announced on Friday market value of the shares of the company up to IPO “RussNeft” was half of the assessment rates at the end of last year. Then was supposed to get $400-500 million from the IPO shares placed twice less.
At the opening of trading on Friday Gutseriyev said that he was satisfied and that assessment of the company. “I was waiting for $3 billion to $4 billion, but $2.5 billion is good, thank God, a good beginning,” he said. “The sensations are good, a lot of people, a lot of applications. More than 32 billion roubles (by results of the placement). While our expectations come true”, he said.
Dividends to shareholders RussNeft plans to pay in 2018. While he did not rule out that there will be interim dividend in 2017 with the favorable development of the market. “It is possible that it will be in 2017, everything will depend on macroeconomics. If macroeconomics is to be prosperous, it is very possible that these dividends will be paid in 2017. The dividend payment is actually interest of all shareholders, but in the emphasis on the payment of dividends to the detriment of production,” he said.
Shareholders are expected to be paid 50% of net profit, net cash flow for investment and repayment of loans and borrowings of the company.
By the end of 2016 RussNeft expects a profit of 13 billion rubles., net profit – RUB 108 bln, EBITDA of 25 billion rubles. the company’s Capital investment, according to the business plan for 2017-2019 can be a total of 90 billion rubles.
In April 2017 the planned purchase of RussNeft’s assets to another company family Gutseriev – “Forteinvest”. But the accession of another company Gutseriev, Neftisa, which was previously planned to bring to the stock exchange in the United with RussNeft group in the next two to three years is not planned, said the newly appointed President of “RussNeft” Eugene Tolochek.
The debt of RussNeft is currently $1,215 billion According to Gutseriev, the repayment of half of the debt deferred until 2025.
“There is a chance that RussNeft would later become a large and liquid. Now we need to make the company more due to new acquisitions and to continue to make the international listing, which will increase the company’s liquidity and the range of investors who can invest” – says the analyst of one of the Russian investment banks.