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1.
When first announced, the IPO was originally expected to
raise $20 billion, but was subsequently scaled back and is now
expected to be about $10 billion.
2.
Morgan
Stanley, JP Morgan Chase, ABN Amro and Desdner Kleinworth
Wasserstein are acting as advisers on the Rosneft IPO, and the
company recently hired its first full-time Western executive,
Peter O'Brienan American investment adviser, to lead strategic
investment projects and external financing
3.
The history of the IPO goes back
to the time when Rosneft was effectively privatized. In 2005 a
loan taken out by Rosneftegas, Rosneft's parent company, allowed
it to buy 10.74% of Gazprom for $7.5 billion. That purchase
allowed the state to regain majority ownership in Gazprom. The
lenders were ABN Amro, JP Morgan, Morgan Stanley and Desdner
Kleinworth Wasserstein, which happen to be the four lead banks
in Rosneft's coming IPO. To secure this loan, Rosneftegas
pledged 49% of Rosneft's shares to these banks. But Rosneft also
owes $6 billion to the China National Petroleum Company (CNPC)
based on a loan agreement signed during a Russian state visit to
Beijing in January 2005. The short-term funds went to help
Rosneft buy Yuganskneftegas from an intermediary firm that first
acquired it at auction.
4. It is not exactly known what
will be included assets when it is floated. In total there are
about 100 companies which are associated with Rosneft. Of these,
just 12 have been listed in the company's consolidation plan. It
has been reported that some of the subsidiary shareholders are
not entirely happy with the price paid for their holding.
5. Investors will also be
looking for clues as to the proposed dividend policy. This is
important as the company’s declared intention is to invest
heavily on its infrastructure to increase production.
6. There are already hints that
Rosneft's profitability will be lower than industry norms. When
Yuganskneftegas was part of Yukos, its production costs were
about $1.70 per barrel. But now, as part of Rosneft, its
production costs are reportedly over twice that, at $3.50 per
barrel.
7.
There have also been reports that
the company plans to carry out private stock placement at the
same time as the IPO. This has raised concerns that need to be
clarified.
8. Financial analysts have shown
mostly positive enthusiasm for the IPO. This has of course been
against the background of soaring energy prices.
9.
There have also been some notable
warnings. Prominent among these have been calls by financier
George Soros and UK fund manager F&C raising concerns about
potential transparency, governance and legal threats resulting
from parties connected with Yukos.
10.
In order to allay Western investors
concerns the company tried to address governance issues. It
approached former U.S. Secretary of
Commerce Donald Evans to become the company's chairman but
failed in this approach.
11.
More recently there have
been reports that the company has proposed three new
independent members, including Hans Jorg Rudloff, chairman of
Barclays Capital.
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