Sovcomflot General Director Dmitry Skarga said the company preferred American Depository Receipts (ADRs) as a way for listing the company's stock abroad, which would help the oil transportation company expand into gas shipping.
"Our priority is an ADR issue. It allows the government to get a maximum price for our assets and to avoid all discounts on Russian risk and other risks," Skarga told Reuters in an interview. He declined the give a time frame for the issue.
The government is currently preparing Sovcomflot for privatisation and is considering four options - an auction, an auction with investment conditions, selling some shares abroad or merging the company with another firm.
Skarga said the government had asked Sovcomflot's management to assess the options.
Sovcomflot has a tonnage of 3.2 million tonnes, or 30 percent of Russia's cargo fleet. It reported a net profit of $186.4 million last year.
Skarga said Sovcomflot was considering floating shares of its key transportation subsidiary Siona Trust and Holding as a sub-option.
"Both in Sovcomflot and in Siona, we are suggesting issuing ADRs ... for 35-40 percent of shares with the price of the stock varying from $250 million to $300 million, or may be more," he said.
Skarga said he favoured leaving a controlling stake of 50 percent in government hands. He said he considered the New York Stock Exchange the best floor for Sovcomflot shares.
"This exchange is best suited for the shipping business," he said. "All the biggest shipping companies are there."
Skarga also said that Sovcomflot was considering buying other transportation companies and building new ships. Sovcomflot has $200 million in free cash flow for these ends.
Skarga said that Sovcomflot's priority was to build large-capacity oil tankers and gas carriers.
"The gas market is less volatile than the oil market," Skarga said. "Gas transportation is more stable because deals are contracted for a long period, for 20-25 years."