Time is ripe for an IPO in London for Russia’s Sibur

Russian chemical giant, Sibur, is controlled and wholly owned by the country’s gas giant, Gazprom. I think it is high time the company was set free and allowed to boost its potential for growth through an initial public offering. An IPO would give it independence and also access to stock market funds, especially if it chose to list on the London Stock Exchange. 

The company’s management tried for a management buyout a couple of years ago which was cancelled at the last moment and I expect they would relish the chance to be independent if Gazprom let them go. It has a dynamic, young management team led by 40-year old Dmitry Konov.

Sibur this week settled its old debts with Gazprom, so now is a perfect moment for the floatation. According to ICIS news, Sibur Holding has completed a process to settle its old debts. 

Sibur’s subsidiary, AK Sibur, fully repaid its debt obligations and was now due to be liquidated by the end of 2010, Sibur said in a statement. AK Sibur was formed in 1995 and became insolvent by early 2002. In September that year, AK Sibur reached an amicable settlement with creditors.

In December 2005, Russia’s gas giant Gazprom and Gazprom-controlled Gazprombank finalised a deal to take over Sibur Holding in exchange for the Roubles (Rb) 39.5bn ($1.26bn, €948m) AK Sibur owed Gazprom.

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