Russian oil major to list in Hong Kong

Russia’s second largest oil company plans a secondary listing in Hong Kong in mid-2013 to draw investors.

Lukoil wants to access a new class of investors, hence its plans for a Hong Kong IPO, said Vice-President Leonid Fedun. Lukoil’s primary listing is in Moscow, site of its world headquarters.

“The world is changing. Asia is playing a greater role in politics and economy,” he noted.

The planned secondary listing in Hong Kong is estimated to be worth US$1 billion to US$2 billion.

Lukoil’s planned listing comes at a time when the Hong Kong Stock Exchange is trying to diversify from its reliance on IPOs by mainland Chinese companies.

The group has submitted a bid for the London Metal Exchange . However, trading data from Prudential and Vale have shown that secondary listings by foreign companies in Hong Kong tend to generate little interest.

Fedun was in Hong Kong this week to meet investment bankers and potential investors. He said initial reaction was positive regarding the planned secondary listing.

Fedun was confident Chinese investors would take an interest in Lukoil, which has had successful joint ventures with Chinese oil majors over the years.

Lukoil is the world’s second largest public company behind ExxonMobil in terms of proven oil and gas reserves.