Russian aircraft manufacturer Irkut has been cleared to go ahead with its first American Depositary Receipts (ADR) offering, following approval this week by Russia's Federal Financial Markets Service.
The company, which is based around the plant that produces the Sukhoi Su-30MK fighter, will be unable to place more than 25% due to state restrictions on foreign ownership of defence or strategic companies. The law is under consideration, however, and may be changed in the near future, allowing up to 49% of a strategic enterprise to be foreign-owned.
A conversion of shares to ADRs by Irkut could be possible as soon as the second half of November following approval by the US Securities Exchange Commission, says Irkut, quoted by business daily Vedomosti on 2 November. A listing on an exchange is unlikely before 2005.
Irkut, Russia's only major aerospace firm to have a listing, has to decide on which stock exchange to place shares. In September the company said it wished to convert its entire 25% free float in first level ADRs. Russian media reports say the company has already filed to the US Securities and Exchange Commission for approval. Irkut's first share issue in Russia in March was of 23.3% of its shares for $127 million, bought by Russian and foreign (non-US) buyers.
HOWARD GETHIN / MOSCOW
Source: Flight International