Sovcomflot IPO Expected in Q3 2016
By Aiswarya Lakshmi
Thursday, February 4, 2016
The Russia's top shipping company Sovcomflot initial public offering (IPO) is expected in Q3 2016, part from the privatization program by the government.
An IPO for Sovcomflot could take place later this year. The current fleet of Sovcomflot numbers 142 vessels with total deadweight of 12.4 million DWT.
The troubled Russian economy will need for speed up the privatization of the country largest shipping company, as getting fresh funds into the budget for 2016.
Russian president Vladimir Putin summoned on a meeting the directors of the leading state-owned companies, including Sovcomflot, Rostelecom, Transneft, Aeroflot and Rosneft, negotiation with the the IPO and privatizations.
He placed limits on the possibility of the sales, telling the executives that the state must maintain control of strategic firms, that any buyers must be registered in Russia, and that “there shall be no sale of shares for a pittance.”
“Russia should not delay the mass privatization of state assets, as the market is extremely unfavorable”, said the Minister of Economic Development of the Russian Federation, Alexey Ulyukaev. The country budget for 2016 is based on crude oil price of 50 USD per barrel, while the current levels are quite lower, so “atmosphere is getting nervous”, added Alexey Ulyukaev.
The company Sovcomflot is 100% state-owned corporation, which is specializing in petroleum and LNG shipping.