Renaissance Capital Chief Executive Officer Stephen Jennings said there may be at least 12 companies from the former Soviet Union and Africa seeking to list in Hong Kong in the next 12 months.
At least two resources companies from Africa and another from Kazakhstan plan to sell shares in the city in the first quarter of next year, Jennings said in an interview today. More Russian companies will follow United Co. Rusal and IRC Ltd. to Hong Kong, he said.
“Across our geographies, which are the former Soviet Union and Africa, we see at least a dozen transactions in the next 12 months,” Jennings told Bloomberg Television.
OAO EuroSibEnergo, the power utility controlled by Russian billionaire Oleg Deripaska, is seeking to raise $1.5 billion in an initial public offering in Hong Kong next month, Deripaska told reporters in Tokyo on Nov. 14.
Rusal, the world’s biggest aluminum producer, also controlled by Deripaska, raised $2.2 billion from an IPO in January. IRC, the iron-ore unit of Petropavlovsk Plc, Russia’s third-biggest gold producer, raised $241 million in an initial sale last month.
As of yesterday, Rusal had fallen 9.2 percent from its IPO price, while IRC had lost 11 percent from its initial offer price, according to data compiled by Bloomberg.
Shares of the 63 new listings in Hong Kong this year before today have gained an average 29 percent from their IPO prices, data compiled by Bloomberg show. Companies have raised $48 billion from IPOs in 2010, the highest since Bloomberg began to track such data in 1999.
Hong Kong may replace London as the top listing venue for Russian and African companies in coming years, Jennings said.
“Three, four years from now, this will be the primary listing venue,” he said, “Now we are going through the process from London to Hong Kong.”