On July 17, 2008, the MICEX and RTS stock exchanges launch trade in Inter RAO UES (RTS: IRAO) shares, MICEX announced on Wednesday. The shares will be traded on the E quotation list. At the earliest, the shares may be included on the B list in three months. The Rosatom state corporation owns more than 57% in the Inter RAO. The company's potential free-float is estimated at 38.5%, including GDRs.
Inter RAO UES is an electricity company with numerous power generation and distribution assets in Russia and abroad. The total installed capacity controlled by the company is estimated at around 8,000 MW. The company is an active investor and a dominant exporter and importer of electricity in Russia.
In the current market conditions, we expect a serious correction in the shares in the first days of trading. We expect highly volatile trade for the next several months. Downward pressure may be exerted by the fact that most of the former UES shareholders have already received shares in the unbundled Inter RAO, and many of them will likely opt to lock in profits. The outcome of the first day of trade in Federal Grid Company shares will confirm this assumption.
At present, we do not have an official recommendation on Inter RAO UES shares.
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