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Russia’s RusAl could shift IPO from London to Hong Kong

Russia’s aluminum giant RusAl is considering plans to shift its $9bln initial public offering from the London Stock Exchange to Hong Kong, a leading British financial newspaper said on Wednesday.

The Financial Times said RusAl, the world’s largest aluminum producer, could make this decision amid growing tensions between Russia and the UK and proposed tougher listing requirements in Britain. The paper quoted a senior executive at Basic Element, the holding company of businessman Oleg Deripaska who holds a majority interest in RusAl, as saying that there was “a 95% chance” the company would now list in Hong Kong instead of London. The executive, who spoke on the condition of anonymity said investors in Hong Kong were more eager to buy Russian shares and added that tougher listing requirements on the LSE could be another reason for the decision. The executive said the diplomatic row between the UK and Russia that has been raging ever since former Russian security officer Alexander Litvinenko was murdered in London in November 2006 was another reason for shifting the IPO to Hong Kong. (