Rostelecom allowed some of its subsidiaries to go public

PJSC “Rostelecom» may conduct an initial public offering (IPO) of certain of its subsidiaries if market conditions are favorable in the future. This was stated by the company’s president Mikhail Oseevsky at the “Made in Russia” forum.

“We do not exclude an IPO for some subsidiaries <...>, but only if we are ready <...>. While we are focused on developing the assets themselves, there are enough internal resources for this,” explained Oseevsky (quote via Interfax).

He also noted that “Rostelecom» is developing a new development strategy for 2025-2030. The previous one, according to the head of the company, has already been completed, and “even with some excess.” The company will present its future strategy, including its dividend policy, in 2024 after approval by the board of directors, the president of Rostelecom specified.

The company’s preferred shares on the Moscow Exchange rose to 71.25 rubles by the close of the main trading session. (+0.71% per day). Ordinary shares (JSC) of Rostelecom fell by 0.31% to RUB 77.27. The Moscow Exchange index amounted to 3255.16 points (+0.18%). Since the beginning of the year, quotes for preferred shares have increased by 28.15%, and for common shares – by 38.13%. During this time, the benchmark rose by 51.11%.

Rostelecom» announced plans to conduct an IPO for some of its substructures or attract strategic partners during the presentation of the company’s five-year development strategy in 2021. Among the “subsidiaries” that in the future may begin trading on the stock exchange may be data processing centers, cloud services, information centers security, digital medicine units and others.

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