"The main goal of the IPO is to attract investment and raise the capitalization of the AFK Sistema," Alexander Goncharuk said at the 9th Russian Economic Forum in London, adding that the price of the company's ordinary shares had increased 40% since its own IPO last year. Shares are trading at around $24 in London.
AFK Sistema was established in 1993 and has interests in telecoms, high-tech, insurance, real estate, retail and media companies, as well as banks. In February 2005, the company held an IPO of 19% of its equity capital on the London Stock Exchange, raising $1.56 billion.
Sistema owns and manages a diversified portfolio of assets in various sectors, including telecommunications (MTS, Comstar United Telesystems, and others), electronics (Sitronics, STROM Telecom, Kvazar-Micro through Scientific Center Concern), insurance (Rosno), real estate and construction (Sistema-Hals), finance and securities (MBRD Commercial Bank), international travel (Intourist), and commerce (the Detsky Mir group of companies).
In August 2005, Sistema bought stakes in six oil companies in the Volga republic of Bashkortostan (28.17% in Novoil, 25.52% in Ufimsky NPZ, 22.43% in Ufaneftekhim, 25.00% in ANK Bashneft, 24.87% in Ufaorgsintez, and 18.57% in Bashnefteproduct) for $599.7 million. The holding manages Bashkortostan's oil firms through Sistema-Invest company.
Sistema has ratings by Standard & Poor's (BB-), Fitch Rating (B+), and Moody's Investors Service (B1).
