CITY fans of ex-Soviet Union mining companies will soon have another stock to pick after Kazakh energy producer Zhaikmunai said it was eyeing a move to the main market of the London Stock Exchange yesterday.
Zhaikmunai currently trades via global depository receipts (GDRs) on the LSE but indicated it may swap these for a full listing.
The company is the latest in a series of high-growth resources companies from Russia and former Soviet states that are moving their domicile to the UK and taking a full listing. Most cite the greater liquidity, access to a wider pool of capital and the profile they gain from being included in the FTSE indices in London.
“They are looking at it, but no decision has been made,” said a Zhaikmunai spokesman, adding that it had retained solicitor White & Case to examine whether such a move would be efficient for investors.
Zhaikmunai’s biggest shareholder is Frank Monstrey, a Belgian-born private equity investor who acquired its assets in 2004. He owns 28 per cent.
The surge in emerging market mining and energy groups seeking London listings has alarmed some institutions. The recent addition of Russian groups Evraz and Polymetal, and pending arrival of a third, Polyus Gold, has spooked fund managers due to the low level of share capital they often list and their control by one dominant owner.
FAST FACTS | ZHAIKMUNAI
● Owns oil and gas assets in Kazakhstan
● In line to enter the FTSE 250 if it obtains a full listing on the London Stock Exchange
● Biggest shareholder is Frank Monstrey, a Belgian private equity investor, with 28 per cent