Russia's RTS to hold IPO on its trading floor
2010-11-02 17:23:12
The Russian Trading System (RTS) will hold an Initial Public Offering (IPO) planned for 2011 on its own trading floor, a source close to the stock exchange told RIA Novosti on Tuesday.
"The exchange's board has worked out a plan to prepare for the IPO and started its implementation," the source said without disclosing the details of the share placement. The RTS will have to choose a lead manager, improve corporate procedures of dealing with investors, work out the issue's documents and other standard IPO procedures," the source said.
RTS' IPO aims to raise funds to increase the stock exchange's capitalization and guarantee funds for its depositary and clearing infrastructure due to expected changes in Russian legislation and the growth of trading volumes.
The IPO will also further the expansion of its business in Russia and the CIS, the further development of its projects in Ukraine and Kazakhstan and the start of new stock exchange projects and products, it said.
RTS Board Member Ivan Tyryshkin said that the RTS would get a market valuation during the IPO, while its shares would be readily available for trading as a free float.