Polymetal Targets MSCI Russia With Start of Trading in Moscow
Polymetal International Plc (POLY), the Russian gold producer that’s being ejected from the FTSE 100 benchmark index this month, plans to start trading its shares in Moscow to broaden its investor base.
Trading of the shares in Moscow is expected to start June 20, Polymetal said today in a statement on its website. As part of the move, one of its minority shareholders will sell as many as 2 million shares valued at about $20 million that will be traded in the Russian capital, Chief Executive Officer Vitaly Nesis said in a phone interview.
Polymetal moved its share listing from Moscow almost two years ago in an attempt to tap new investors. Its shares have slumped about 20 percent since the company gained a primary listing on the London Stock Exchange (LSE) in October 2011.
The Moscow listing is an effort to gain possible inclusion in the MSCI Russia benchmark, Nesis said, as well as allow the company to shore up its investor base.
Pension funds will be able to invest in the company’s stock, and the stock will also be eligible for inclusion in the Russian central bank’s Lombard list, which means investors qualify for financing from state banks using the stock, Nesis said.
Polymetal shares will continue to trade in the FTSE 250 Index. “We are optimistic and hope to get back to FTSE 100 one day,” Nesis said.
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