United Co. Rusal, the world’s largest aluminum producer, picked Russia’s biggest bank OAO Sberbank to issue the nation’s first depositary receipts by the end of the year as it seeks investors outside its Hong Kong listing.
The receipts will extend to all Rusal’s authorized share capital of 20 billion common shares, the Moscow-based company said today in an e-mailed statement. VTB Capital, the investment bank arm of Russia’s second-largest lender, is advising Rusal.
Issuing the receipts will allow Rusal, the first Russian company to sell shares in Hong Kong when it raised $2.24 billion in January, to attract investors that focus on securities traded in Russia. The receipts will be backed by the Hong Kong-listed common shares of the St. Helier, Jersey-registered company.
“We are submitting the prospectus with the Russian Securities Commission today,” Oleg Mukhamedshin, Rusal’s head of capital markets, said in an interview in London today. “We expect the approval from the Securities Commission in the next couple of weeks and the listing by the end of this year.”
The depositary receipt program allows companies registered abroad to trade in Moscow. The Moscow listing will help the company extend the trading hours of its shares beyond Hong Kong, Mukhamedshin said.