May 24, 2018 / 5:18 PM / 3 months ago

Russia's TMK says U.S. unit IPSCO still committed to share listing

ST PETERSBURG (Reuters) - IPSCO Tubulars, the U.S. subsidiary of Russian oil and gas pipemaker TMK, remains committed to an eventual initial public offering (IPO), TMK said on Thursday.

IPSCO, which halted its IPO in February citing adverse market conditions, said last week that it had filed an amendment to its registration statement with the U.S. Securities and Exchange Commission relating to the proposed share offering.

“We filed the (IPO) prospectus once again last Friday and it is for a reason. The deal is not canceled, it was just postponed in January. We remain committed to this process,” Vladimir Shmatovich, TMK head of strategy, told Reuters on the sidelines of the St Petersburg economic forum.

He declined to comment on the timing of the potential deal. IPSCO said on Friday that the number of shares to be offered and the price range have not yet been determined.

IPSCO, one of the United States’ largest domestic producers and suppliers of seamless and welded steel pipe for the oil and gas industry, depends on the import of some materials from its Russian affiliates which it cannot source in the United States.

In May, it asked for some of its products to be excluded from the recently imposed U.S. steel import tariffs but, according to Shmatovich, has not yet received any response.

“This is because the request for exception is being filed separately on each group of products and there are a great many of them. Several thousands of such requests have been submitted already because every supplier has dozens of such product types, according to our information, and only a few people are looking at all of this,” Shmatovich said.

“That is why no one has received physical answers yet. If one calculates the pace (of the process), it can take more than a year,” he added.

However, that “is not a problem”, he said, because the U.S. steel import tariffs have caused an increase in prices for steel and steel pipes, and TMK continues exporting steel pipes from Russia to the United States.

Reporting by Polina Devitt; Editing by Maria Kiselyova and Elaine Hardcastle

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