Russian petrochemical company SIBUR said it's ready for going public and Moscow is most probably to be the place. That's according to Sergey Komyshan, the executive director at SIBUR.
"One of our major shareholders, Mikhelson, has always said one thing since he actually stepped into the share capital of SIBUR. That is SIBUR is a company that should be made public. He's a true believer in public markets. The example of his first company that he founded – the Novatek – clearly states that. And this is what he also thinks about SIBUR. So I guess that one day it should happen. We as the management as supposed to be IPO already," Komyshan said.
He also mentioned that Moscow is most probably to be the place of IPO since it has become pretty efficient trading place for global financial investors.
China Petroleum & Chemical Corporation (Sinopec) and SIBUR previously signed a framework agreement for a project named Amur Gas Chemical Complex (AGCC) in Moscow. Under the agreement, SIBUR and Sinopec established a 50/50 Joint Venture (JV) in Russia to produce SEBS (styrene, ethylene and butylene-based block copolymers).
"We've been discussing with the Sinopec on an extension of the partnership in the form of Joint Venture on the basis of the AGCC project, which is still a project. The final investment decision has to come. But when it will come, probably we should ask Mikhelson in hands of the decision," Komyshan said.
As Russia's economy saw sluggish growth recently, in part due to very conservative economic policies, and now coupled with the government reshuffle, many may wonder how it would affect business outlook and expansion strategy.
"Our business is indeed very much tied in with the GDP performance. And the GDP growth in Russia has been moderate," said Komyshan. "We as a petrochemical company tried to foster the demand on our products. And as a matter of fact, there is still a lot of sleeping demand."
Komyshan introduced that the company has launched a new polypropylene project which will drive a dramatic increase in local demand growth.