First Russian power IPO raises $459million (160 words)

Reforms to the Russian energy sector gathered pace with the successful IPO of the Fifth Power Generation Company (OGK-5). The book for bids closed on this, the first IPO in the sector, on 30 October.

Speculation that Gazprom would buy the entire issue, thereby creating a gas and power monopoly, proved false. Subsequent to the issue, RAO UES will control 75% of OGK-5, compared to 87.7% previously. Strategic investors, including the European Bank for Reconstruction and Development, received 5%