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Abramovich-Backed Insurance Company Said to Pick Banks for IPO

A Russian insurance company backed by billionaire Roman Abramovich has picked banks to prepare it for an initial public offering, according to two people familiar with the matter.

Renaissance Insurance selected JPMorgan Chase & Co., Credit Suisse Group AG and VTB Group as global coordinators to work on the deal, according to the people, who asked not to be identified as the information is private. The listing may come later this year, one of the people said.

Spokespeople for JPMorgan, Credit Suisse, VTB and Abramovich’s Millhouse Capital declined to comment. Sputnik Group, which holds a majority stake, didn’t immediately reply to a request for comment. Renaissance said by email that it is looking at “all strategic development options, including the possibility of an IPO.”

Renaissance companies together had 4.5% of the Russian insurance market in the first quarter, according to Expert RA ratings agency. The insurer may be valued up to 40 billion rubles ($550 million), Aton analyst Mikhail Ganelin said.

Boris Jordan’s Sputnik Group and partners own a 59% stake, and a group of investors linked to Abramovich and some of his business partners bought almost 30% in the company in May, while other shareholders include Baring Vostok investment funds.

Renaissance is part of a trend among Russian companies preparing for initial public offerings. Real-estate platform Cian.ru and information technology company Softline could list this year, while fashion store Familia is among those considering an IPO in 2022. Russia had the busiest first half for stock offerings this year since before the annexation of Crimea, with consumer companies dominating the pipeline.

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