Russia's NefteTransService Plans London IPO

January 17, 2013

NefteTransService, one of Russia's biggest private freight rail operators, hopes to raise around $500 million via a London listing, sources said, that it will then use to expand into Ukraine and Kazakhstan as the markets open up to competition, Reuters reports.

Two sources with knowledge of the placement said the company expected to offer around 25 percent of its shares. The company confirmed its intention to float but did not disclose the amount it aims to raise.

The IPO will follow rival Globaltrans, which went public in 2008 and raised $450 million last year in a share sale in order to give it added firepower for acquisitions.

Kazakhstan and Ukraine, as well as having significant cross-border cargo flows with Russia, have similar infrastructure and regulation and are also undergoing rail sector reform, according to Reuters.

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