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Roman Abramovich's Evraz soars on London stock market debut

Shares in Evraz, the Russian steel maker part owned by Roman Abramovich, soared on their London debut, rising almost 13pc.

Shares in Evraz, the Russian steel maker part owned by Roman Abramovich, soared on their London debut, rising almost 13pc.
A slew of Russian companies are seeking to come to London, where it is easier to raise money and raise a company's profile. Credit: Photo: AP

The shares jumped 40¼ to 360¼p, valuing the business at £4.7bn. Mr Abramovich, the billionaire owner of Chelsea Football Club, owns a 35.32pc stake in the company, which is Russia's largest producer of steel.

"This result underlines the confidence of the capital markets in our strategy," said Alexander Frolov, Evraz's chief executive. He also noted the company's change of domicile to the UK and its admission to the London's premium market were "paving the way for FTSE UK index series eligibility."

The company could enter the blue-chip index at its next reshuffle in December, which means tracker funds and pension managers will be required to purchase the company's shares, despite it having a free float of just 23.4pc.

Usually a free float of 25pc is required for a premium listing in London, but the UK Listing Authority (UKLA) has give the Russian group a waiver.

However, there has been substantial criticism of companies with small free floats and questions over corporate governance being granted premium UK listings. A review of these requirements is now taking place.

A slew of Russian companies are seeking to come to London, where it is easier to raise money and raise a company's profile.

Polymetal, a Russian precious metals miner started trading in London last week after changing its domicile to London.

Polyus Gold also recently announced plans for a London listing, but the process has been delayed after a committee chaired by Russian prime minister Vladimir Putin delayed approving the move.