London Stock Exchange boosted by largest Russian IPO of 2017

The London Stock Exchange (LSE) received a boost to morale today as Russia's largest gold producer, Polyus, returned to London's main market after a two-year absence.

Polyus raised $879m (£681m) through a nine per cent equity offering to international investors, which valued the company at $8.9bn.

The initial public offering marked Russia's largest float for 2017, which the LSE said reinforces its status as a leading global financial centre.

Xavier Rolet, LSE chief executive, said Russian companies are a natural fit for the LSE.

The listing demonstrates London’s ability to deliver substantial equity funding to ambitious businesses from around the world. It also underlines the fact that London remains the natural destination for Russian companies seeking access to international investor capital.

The company has also raised $2.05bn in debt capital in London over the last decade, and most recently, it raised $800m through a Eurobond placement on London’s main market.

Polyus, which is run by the family of Russian tycoon Suleiman Kerimov, de-listed from the LSE in 2015.

Pavel Grachev, the boss of Polyus, said:“We are most pleased with the level of support and interest Polyus has received from the investment community.

"We had nearly 100 investment funds participating in the transaction, representing some of the largest names on the market, including emerging markets and sector specialists.

"The company remains narrowly focused on the shareholder value creation and is well placed to build on its position as one of the largest and lowest cost producers of gold globally with a clear strategy for long term, sustainable growth and an attractive dividend profile."

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