HONG KONG: Russia's UC RUSAL faces a lengthy delay to its $2 billion share flotation after the Hong Kong bourse insisted the world's top aluminium firm must meet more conditions before a listing can go ahead.

The delay puts Russian industrialist Oleg Deripaska and the IPO plans for his company on the back burner once more after a breakthrough last week when it clinched a landmark $17 billion debt restructuring deal with creditors.

Support from the Russian state, which confirmed yesterday it was prepared to buy around a third of the IPO in which RUSAL would list 10 percent of its stock, did not persuade the Hong Kong bourse to give a final nod.

"Based on the company-provided information, the listing committee has not approved the deal ... until the firm can fulfil some conditions," said a source close to the deal. He declined to say what the conditions were, but warned they would not be easy to meet in a few days.

Reuters

(HK Edition 12/08/2009 page4)