The Hong Kong Stock Exchange has delayed considering an application from Russia's aluminum giant RusAl for a $2.5 billion initial public offering (IPO) on the bourse, two sources close to banking quarters said on Monday.
The world's largest aluminum producer, which accounts for 12% of global aluminum and 15% of alumina production, earlier announced plans for listing on the Hong Kong and Paris-based Euronext stock exchanges at the end of 2009 to sell about 10% of its shares and raise some $2.5 billion.
"The [Hong Kong] stock exchange has delayed the application's consideration," a banking source told RIA Novosti, adding that the bourse has postponed the bid examination several times already.
The source said RusAl, which is controlled by Russian tycoon Oleg Deripaska, still had about one week to have its documents examined, following which "it could easily start IPO this year."
The other banking source, told RIA Novosti, however, that the Russian aluminum company was in no hurry to hold the public offering this year, adding that rising aluminum prices on global markets were contributing to RusAl's market capitalization and share prices.
The source said that "in the first quarter of 2010, when the aluminum price hits $2,500 per ton, market conditions for RusAl's listing would be more beneficial" compared with the current price of over $2,115 per ton.
RusAl has declined to comment on the information.
At the same time, one of the sources said that RusAl was continuing dialogue with the Hong Kong stock exchange and the listing committee.
"It [the listing committee] needs more time to study the documents submitted by the company owing to the fact that this is the first Russian IPO, which could set an example for other companies," the source said.
MOSCOW, December 7 (RIA Novosti)
