OAO Lukoil, Russia’s second-biggest oil producer, rose the most in three months on plans to list more than $1 billion of its existing shares in Hong Kong within a year.
Lukoil climbed 3.6 percent to 1,728.6 rubles by the close in Moscow, the biggest gain since Feb. 24. American depositary receipts of Lukoil shares climbed the most in three month, gaining 5.1 percent to $53.80. One ADR represents one ordinary share.
“Placement on the Asian stock exchanges could help Lukoil realize its expansion plans in the area, in particular in China,” Daria Kozlova, an analyst at Rye, Man and Gor Securities, said in an e-mailed note.
Vagit Alekperov, the billionaire CEO of the Moscow-based oil producer, is seeking to quadruple Lukoil’s market value in the next decade as the company invests $125 billion to expand exploration and production worldwide. The company has previously said it may borrow in yuan and look to Asia for growth.
Lukoil may hire China International Capital Corp. and Renaissance Capital for the listing, Deputy Chief Executive Officer Leonid Fedun told reporters in Hong Kong after a presentation to investors today. The oil producer may later gain access to the Shanghai Stock Exchange (510230), subject to permission from the Chinese government, he said.
To contact the reporters on this story: Anna Shiryaevskaya in Moscow at firstname.lastname@example.org; Michelle Yun in Hong Kong at email@example.com;
To contact the reporter on this story: Ksenia Galouchko in Moscow at firstname.lastname@example.org