Reuters reported that Hong Kong traded shares in RUSAL rose 6.2% on a quartet of favorable recommendations from the first 4 banks to value the world's largest aluminium producer after its January IPO.
2 of the 4 banks, however, put a value on the stock below the HKD 10.80 at which the landmark IPO crucial to paying down the Russian company's multi billion dollar debt was launched.
RUSAL, whose largest shareholder is Russian billionaire Mr Oleg Deripaska, has lost 21% of its value since floating about 10% of its stock in late January, raising USD 2.2 billion to help pay down debt incurred prior to the financial crisis.
The company is the first company not headquartered in Asia to list in Hong Kong. Its shares closed at HKD 8.51 on Thursday.
Credit Suisse, global coordinator of the IPO initiated coverage of RUSAL with an outperform rating. Its target price of HKD 11.4 was 5.6% above the IPO price.
Credit Suisse said that there are many uncertainties about RUSAL, yet the ultimate driver remains the aluminium price, which affects RUSAL's bottom line as well as its ability to meet its debt repayment target and financial covenants during the debt restructuring period.
Aluminium MAL0, used in packaging, cars and construction was forecast in a Reuter’s poll to average USD 2,094 per tonne in 2010 and USD 2,226 next year versus USD 1,671 per tonne in 2009. The metal is trading at around USD 2,200 per tonne.
(Sourced from Reuters)
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