Rusal Plans To Create DR Program in Russia


By Gordon Platt

Rusal, the world’s largest producer of aluminum, plans to create a Russian depositary receipt (RDR) program on the Micex Stock Exchange and the Russian Trading System by the end of this year. The Moscow-based company’s ordinary shares are listed on the Stock Exchange of Hong Kong, and its global depositary shares are listed on Euronext Paris. Rusal says the Russian DR program is aimed at improving access to its shares for Russia-focused investors that did not benefit from its Hong Kong listing.

Rusal’s initial public offering in January marked the first time that a non-Asian company decided to have its primary listing in Hong Kong, with a secondary listing in Paris. Retail investors were barred from investing in the IPO, which raised $2.2 billion. “We expect [the RDR program] to generate substantial additional demand for Rusal’s equity from new groups of investors,” says Oleg Mukhamedshin, Rusal’s director for capital markets.

In other DR news, China Kanghui Holdings appointed Citi as depositary bank for its New York Stock Exchange–listed American depositary receipt program. Each ADR represents six ordinary shares of the China–based manufacturer of medical devices. This is a single-listed ADR program, since the issuer’s ordinary shares are not listed or publicly traded in its home market.

Anbow Education Holding, which provides educational and career-enhancement programs in China, appointed Citi as depositary bank for its NYSE-listed Level 3 ADR program. This is also a single-listed program.