BlackRock Buys Stake in Bourse Pre-IPO

BlackRock, the world’s largest asset manager, has bought a stake in Moscow’s MICEX-RTS bourse ahead of its expected IPO from Russia’s state-backed private equity fund, the Russian fund said on Friday. The sale to New York-based BlackRock represents a quick sale for the Russian Direct Investment Fund, which bought a 1.25 percent in the bourse in January and later raised its holding to 2.7 percent, Reuters reported.

(Reuters) – BlackRock, the world’s largest asset manager, has bought a stake in Moscow’s MICEX-RTS bourse ahead of its expected IPO from Russia’s state-backed private equity fund, the Russian fund said on Friday.

The sale to New York-based BlackRock represents a quick sale for the Russian Direct Investment Fund, which bought a 1.25 percent in the bourse in January and later raised its holding to 2.7 percent.

“We expect this transaction to be the first of many made by RDIF and our co-investors in promising Russian companies preparing for an IPO in Moscow,” said Kirill Dmitriev, CEO of the RDIF, which did not specify the amount sold or financial terms.

The $10 billion RDIF was created last year in order to attract foreign investors to committing capital alongside the government.

MICEX-RTS was valued at $4.5 billion in December last year when the two Russian exchanges combined, with a view to holding an initial public offering in 2013.