The stocks of Russia’s largest airline surged in MICEX afternoon trading on Wednesday, after the company announced plans to float American Depositary Receipts representing its shares on the New York Stock Exchange.
Aeroflot’s shares grew 3 percent as of 17:25 p.m. Moscow time (13:25 GMT) to 51.50 rubles ($1.63) per share.
“We are going to place Level 1 ADRs with a proportion of 1 (ADR) to five (shares),” Aeroflot Deputy General Director for Finance and Investment Shamil Kurmashov said on Wednesday.
Aeroflot wants to sell Level 1 ADRs in New York to acquaint American investors with the company. Statistics show that U.S. investors favor investment in the aviation business, he said.
The Aeroflot board of directors approved in late December a program for floating ADRs to the sum of 20 percent of the airline’s authorized capital.
