MOSCOW, June 20 (RIA Novosti) - Pipe Metallurgical Company (RTS: TRMKG) said Tuesday it was prepared to make an initial public offering, and could also issue Eurobonds.
Chairman of the board of directors Dmitry Pumpyansky said TMK, the world's second largest steel pipe producer and third biggest seamless pipe manufacturer for the oil and gas sector, would list on the Russian Trading System, Russia's premier stock exchange.
"We have all the necessary attributes to make an initial public offering, including international audits for the past four years and a long-term strategy," Pumpyansky told an annual investor's conference in Moscow.
Russian companies are widely thought to be heavily undercapitalized, and in need of funds to compete with foreign firms. Many of the country's largest firms have held or are preparing to launch IPOs as a way to bring in much-needed cash.
Established in 2001, TMK is the largest holding in Russia's pipe production industry, accounting for about 44% of domestic pipe output. The company produced 2.86 million metric tons of pipes in 2005, of which exports totaled 750,000 metric tons.
TMK supplies products to more than 60 countries, with clients including Shell, Total and Repsol. Domestically, the company produces pipes for natural gas giant Gazprom, state-owned oil major Rosneft, oil firms TNK-BP, Lukoil, Sibneft and others. Apart from the oil and gas industries, TMK supplies pipes to the chemical and petrochemical, machine-building, energy and construction sectors.
TMK Steel Limited and Dalecone Limited are the company's core shareholders.