The previously announced initial public offering (IPO) of shares in Sibur (Moscow), Russia’s largest petrochemicals company, could take place in the second quarter of next year, according to Dmitry Konov, CEO.
Speaking to the media today on the sidelines of the Eastern Economic Forum in Vladivostok, Russia, Konov said that the timing could be right when Sibur brings onstream ZapSibNeftekhim, its $9.5-billion, large-scale petrochemical project at Tobolsk, Russia. The project will triple Sibur’s polymers capacity. “We’re talking to the banks, we’re talking to get the feeling whether it would be a right moment to move on,” Konov told CNBC. He also spoke with the Russian Information Agency, Bloomberg, Interfax, and Xinhua.
ZapSibNeftekhim is due to be completed in the second quarter of 2019, “which then opens the door for further discussions on listing the company’s shares,” he said. About 15% of Sibur could be floated with Moscow the first stock exchange being considered. “We will then see what we do internationally,” Konov said. A final decision on the IPO would depend on how favorable market conditions are and whether Sibur’s shareholders find the deal attractive enough to sell their stakes.
Russian gas tycoon Leonid Mikhelson is the single largest shareholder in Sibur with a 48.5% stake. Business partner Gennady Timchenko has a 17% stake, and Sinopec and the Silk Road Fund each control 10%. The rest is held by Sibur’s management. The shareholders are satisfied with Sibur’s performance, and the petrochemical cycle will be another consideration, Konov said. According to analysts, the petrochemical industry is in an extended upcycle until at least the early 2020s.
Sibur reported 2017 revenue of 454.62 billion Russian ruble ($6.5 billion), EBITDA of R160.85 billion, and an EBITDA margin of 35.4%. Feedstocks and energy accounted for about 40% of revenue, with most of the rest being petrochemicals.
After ZapSibNeftekhim, Sibur is planning to invest in another major chemical complex, the Amur gas-chemical project at Blagoveshchensk, near the Chinese border in Russia’s Far East, where Gazprom is installing infrastructure to supply natural gas to China. As part of its investment, Gazprom is building six gas-processing lines to produce mostly liquid hydrocarbons and helium. The earliest the Amur petchem complex could be online is 2024.
By Natasha Alperowicz
Source: Chemical Week
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