Russneft raises $500m in IPO

Russneft raises $500m in IPO:
"Russneft, the Russian oil producer in which Glencore holds a 25 per cent stake, has raised 32.4bn roubles ($502m) in an initial public offering on the Moscow Exchange, the company said on Friday.

Russneft, which is Russia’s seventh-largest oil producer by volume with an output of about 150,000 barrels a day last year, said it had sold 20 per cent of its ordinary shares at 550 roubles each in the flotation, valuing its ordinary equity at $2.5bn. Including preference shares, the stake sold in the flotation was equivalent to 15 per cent of the company’s total equity capital, it said.

The deal values Glencore’s stake in the oil company at about $830m — above the $685m at which it was valued in the company’s most recent annual report. Glencore swapped $984m of loans to Russneft and equity stakes in Russneft subsidiaries for its stake in the Russian oil company last year.

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