The world's biggest aluminium company, Rusal, has a stark warning for investors in its Hong Kong stock offering: unless prices for the metal rise and the US dollar strengthens against the Russian currency, it could default on its loans and be declared bankrupt. The warning is one of many contained in the company's listing document, published yesterday, which runs to more than 1,000 pages and spells out the risks and the opportunities of participating in the offer. The listing of the first Russian company on the Hong Kong Stock Exchange is already one of its most controversial. The exchange's listing committee several times sought more documentation from the company, and the Securities and Futures Commission has blocked participation in the offering by retail investors. Rusal, the world's largest aluminium company, is aiming to raise up to HK$20 billion via the issue of 1.6 billion shares, which will be sold at between HK$9.10 and HK$12.50. The proceeds of the listing, one of the largest in Hong Kong in the past two years, will all go to paying off the company's huge US$16.8 billion debts. It only recently completed a restructuring - the biggest in Russian corporate history. Rusal expanded rapidly in the boom years prior to 2008. It plunged into debt following the onset of the financial crisis as the price of aluminium plummeted form its peak of US$3,122 per tonne to US$1,300 per tonne in March 2009. Its warning about the risk of default and bankruptcy is based on the December 2 price of US$2,126 and an exchange rate of 29.4 roubles to the US dollar. Retail investors will only be able to take part in the initial offer if they are prepared to invest a minimum of HK$1 million. They will have to buy the shares from financial intermediaries such as brokers and banks and provide assurance they are knowledgeable investors. Shares can only be traded in the secondary market in board lots of HK$200,000. The listing document carries an unusual warning in large red type on its cover noting that Rusal 'does not meet the profit test to qualify for listing ... and has been admitted on the basis of its large market capitalisation, revenue in excess of HK$500 million and positive cash flow from operating activities'. It further warns: 'The group continues to have significant debt obligations and is subject to stringent covenants and repayment schedules that severely limit its operations and ability to incur new financing.' The document notes a decline in the price of aluminium of 20 per cent would make it difficult for the company to meet its restructuring agreements. A 50 per cent decline in the price would mean it was unable to meet most of its obligations and make it, along with the rest of the aluminium industry, unprofitable. Despite the dire warnings to investors, the company believes that, based on its operating assumptions and the outlook for the sector, it will be able to reduce its debts over the next four years to an extent that it will be able to refinance the remainder. The document also draws attention to the risks to the company arising out of chief executive Oleg Deripaska's looming court action in London. Former business associate Michael Cherney claims he was cheated out of a significant stake in Rusal.