Rosneft IPO Putin it on a premium

Prospective institutional investors aren’t being given much room for safety in the pricing of Rosneft’s initial public offering. The state-owned Russian oil company isn’t bending the knee to Western investors by offering its stock at a discount. In fact, it is asking for a premium - the indicated price range values the group at $60bn to $80bn. Rosneft compares unfavourably to Russian competitor Lukoil. It has slightly less proven reserves and pumps less oil. Moreover, Lukoil is more financially...