international magazine
08 / 2005

Russia's independent gas producer placed 19% shares on IPO, getting $966mn

Russia's largest independent gas producer attracted keen interest to its IPO, becoming the first company in domestic gas production industry to gain substantial finance. Despite the risks intrinsic to Russia's natural gas market (too much in the industry depends on Gazprom's whims and its patronage of access to the gas pipe), demand for Novatek's shares by far outstripped the offer. The example caught up fast Russia's oil producer Urals Energy presented its IPO on London Stock Exchange soon afterwards, next year Russia's state-owned firm Rosneft plans to follow the trend.