Russia's Gazprom seeks to raise financing in Hong Kong
Russian gas giant to issue depository receipts in the city to raise loan and bond financing as well as to broaden its investor base
Russia's Gazprom is seeking to tap Hong Kong's financing platform to raise loan and bond financing along with broadening the investor base for its shares trading at depressed values after the Kremlin-backed firm's oil subsidiary was subjected to European Union and United States sanctions.
The world's largest natural gas producer plans to issue Hong Kong Depository Receipts - repackaged shares already listed overseas - to broaden its investor base, after Russia's Federal Commission of Securities Market's likely admission to the International Organisation of Securities Commissions later this year. This would allow Russia-registered firms to be listed in Hong Kong.
"We are in dialogue with Hong Kong's stock exchange ... we see also in our plans to be listed in Hong Kong as well," Andrey Kruglov, Gazprom's deputy chairman and head of its financial and economic department told the South China Morning Post.
Gazprom shares are listed in Moscow, New York and London. Its American Depository Receipts were listed in Singapore in June.
Its shares are trading at around 2.8 times their forecast earnings per share for this year, much lower than the eight to 12 times commanded by many state-backed energy firms including those on the mainland.
Depositary receipts are securities issued by a bank representing underlying shares of a corporation. The shares will then be placed with the bank or its nominated custodian to trade in overseas markets.