Giant Russian aluminium producer Rusal tumbled from start to finish during its trading debut yesterday, closing the book on a listing process highlighted by milestones and misgivings. Rusal dropped 10.6 per cent to HK$9.66 after raising HK$16.7 billion as Hong Kong's first new listing of the year and the first ever for a Russian company. More than HK$1.85 billion worth of shares changed hands, making it the third most active stock by value in the market. 'All the news [about] Rusal before it listed [was] not so good,' said Linus Yip, a strategist at First Shanghai Securities. 'And retail investors, they know they are not professional investors, so they may not have the courage to get involved with this stock.' Rusal traded in board lots of 24,000 shares and each allotment took on a paper loss of just over HK$27,000 yesterday. Rusal has generated buzz in Hong Kong since first being linked to a potential listing two years ago. While Rusal gives the local market a rare opportunity to diversify its membership with a non-Chinese industry leader, it also comes saddled with debt liabilities. The Securities and Futures Commission restricted the listing to professional investors, requiring minimum subscriptions of at least HK$1 million. Rusal did not meet the stock exchange's main-board profit requirements. The Russian firm further raised eyebrows after saying it will use proceeds from the listing to reduce its US$14.9 billion worth of debt. Its listing comes amid a slump in the market that has dragged the Hang Seng Index down in 11 of the past 12 sessions. Rusal chief executive Oleg Deripaska said the company's debut price was reasonable given that tough stretch. He also expected other Russian heavyweights would follow suit and list in Hong Kong. Meanwhile, Hong Kong Exchanges and Clearing chairman Ronald Arculli is set to visit Russia next month to promote the local bourse. Additional reporting by Isabella Steger
