MOSCOW, Sep 7 (PRIME) — The Russian government is expected to make an initial public offering (IPO) of state-owned shipping company Sovcomflot only on the London Stock Exchange (LSE), a source familiar with the deal told PRIME Wednesday.
The government plans to offer a 25% minus one share stake in Sovcomflot by the end of 2011, Economic Development Minister Elvira Nabiullina said earlier in September.
However, the company has not yet submitted a bid on the listing on the LSE, the source said, adding that while the government has not yet made a final decision on the timeline, the offering could still be made by the end of the year. However, the tanker market is currently at its historic low, the source added.
In June, the government appointed Morgan Stanley Bank, a Russian unit of U.S.-based investment bank Morgan Stanley, as the only organizer of the sale.
Sovcomflot, also known as Sovkomflot, or the Modern Commercial Fleet, is based at St. Petersburgs Baltic port and specializes in petroleum and liquefied natural gas (LNG) shipping.