Rusal IPO attracts attention to Hong Kong

The first sign that United Company Rusal's pending listing in Hong Kong was more than just another commodities company looking to tap the markets came during the company's first press conference here in early January. The meeting room at Credit Suisse's offices in Central, which was admittedly not the largest venue that could have been chosen, was chock-ablock with reporters trying to push their way in to ask questions, without tripping over the masses of microphone cords on the floor or causing any of the dozens of TV cameras to fall over.

Of course, the majority of the questions were about Rusal's debt situation; its access to expansion capital; the legal troubles of its controlling owner, Oleg Deripaska; and the unprecedented moves by the Hong Kong regulators to prevent most retail investors from participating in the initial public offering amid concerns about the company's large debt burden. However, there was also a clear sense that this was something of an historic event: the first Russian company to go public in Hong Kong, finally giving some real credibility to the local stock exchange's efforts to lure companies from outside Greater China to its main board.

That this key step was to be taken not just by any Russian company, but by the world's largest aluminium producer, gave the event a bit of extra weight -- never mind then the current status of its balance sheet.