.jpg)
The London Stock Exchange today welcomed RusHydro, the world's largest publicly traded hydro generation company, to its Main Market. The company’s securities are traded on the Russian MICEX and RTS stock exchanges, and it has chosen to list a GDR on the Exchange in order to gain access to a wider range of international investors and deepen liquidity.
To celebrate the occasion, the Exchange’s markets were opened by Vasily Zubakin, Acting Chairman of the Management Board of RusHydro. Mr Zubakin said:
“Our decision to pursue a London listing reflects our desire to tap into a large potential liquidity pool by making it easier for international investors to access our securities. We think that this move will significantly boost the liquidity of our depositary receipts. We also believe that this listing will help spur our development from a Russian blue chip company into a global emerging markets blue chip.”
Chris Gibson Smith, Chairman of London Stock Exchange Group, said:
“RusHydro is a good example of the increasingly complementary relationship between the Moscow and London markets, and of the growing international profile of Russian industry. The capacity of Russia’s markets to meet the initial capital-raising requirements of a broad range of its companies is well-established, and issuers like RusHydro are now turning to London to seek a broader base of international investors and the enhanced liquidity that can bring with it.“
RusHydro is now one of 47 GDRs from CIS (Commonwealth of Independent States) issuers to be traded on the London Stock Exchange’s International Order Book (IOB). GDRs issued by companies from the CIS accounted for 91 per cent of the $523 billion traded on the IOB during 2008. The Exchange is committed to the continued development of the IOB to ensure that it delivers greater liquidity and the best possible value to issuers and investors:
- Earlier this year, it introduced a central clearing service on the IOB. As a result five member firms that have not previously traded on the IOB now plan to use the service as a result of the new CCP provision.
- In 2006 London Stock Exchange Group’s derivatives exchange, EDX London, launched its Russian IOB service, based on the most liquid Russian GDRs on its equity order books. 13.2 million contracts have been traded on the service so far this year, contributing to the liquidity of the underlying securities.
London Stock Exchange Group Chairman Chris Gibson-Smith joins RusHydro for the opening of the Exchange's markets
