ST. PETERSBURG, June 14 (RIA Novosti) - The state will control over 70% of Rosneft, Russia's No.3 oil company, after an initial public offering likely to take place before next month's G8 summit, the economics minister said Wednesday.
Rosneft Monday officially announced that its shares would be up for sale at Russian banks from June 26 through July 10. Experts expect the IPO to be complete by July 15, when the Group of Eight industrialized nations, which Russia currently chairs, starts its annual summit in St. Petersburg.
"The state will retain more than 70% of [Rosneft] shares," German Gref said, without specifying the size of the stake to be floated on Russia's two largest trading floors - the Russian Trading System and the Moscow Interbank Currency Exchange - and the London Stock Exchange.
The oil company will use part of the funds it raises to pay off a $7.5-billion loan granted last year by a consortium of banks that Rosneftegaz, a state-owned company that owns 100% minus one share of Rosneft, took to buy 10.74% of stock in Russian energy giant Gazprom.
Rosneft has a charter capital of 90.92 million rubles (about $3.3 million), and its ordinary shares have a face value of 1 ruble each. Company experts estimate its value at $25 billion.
