The first definite participant has emerged for the initial public offering of Russian shipowner Sovcomflot (SCF Group).
Kirill Dmitriev, chief executive of sovereign wealth fund Russian Direct Investment Fund (RDIF), said it will invest in the shipping company through the IPO, the Interfax news agency reported.
Sovcomflot plans to raise at least $500m in a listing in Moscow, without giving a time frame.
Russian investment sources said the sale could come next month and value the company at between $7bn and $10bn.
Billions under management
The government already owns 100% of SCF Group and will retain control after the IPO.
RDIF was created in 2011 under the leadership of the president and prime minister of Russia, who were Dmitry Medvedev and Vladimir Putin respectively.
The idea was to co-invest alongside top global investors, acting as a catalyst for direct investment in Russia.
RDIF has invested and committed more than RUB 1.9trn ($24.5bn). Of this, RUB 1.7trn has come from co-investors, partners and banks.
The fund has capital of $10bn under management.
RDIF has also attracted over $40bn of foreign capital into the Russian economy through long-term strategic partnerships.
SCF Group has provided no valuation guidance for the IPO.
The Russian company said its fleet of 146 tankers, LNG carriers and offshore support ships has a book value of $6.2bn.
VesselsValue assesses the operational fleet as worth $4.37bn.
The IPO has been a long-standing ambition of the group since at least the mid-2000s.
