MOSCOW, May 3 (UPI) -- Russia's Rosneft is halving its IPO plans from $20 billion to $10 billion.
The move follows criticism from Western investors over corporate governance in the Russian oil major, and legal risks associated with its takeover of Yukos, the Moscow Times reported Wednesday.
Under its earlier plan, Rosneft's IPO would have been the largest ever.
Rosneft chief financial officer Peter O'Brien said the company's financial situation negated the need for a larger offering.
"Our financing needs have come down substantially as a result of a number of developments over the past six to nine months: higher current and projected oil prices, our growing production and lower borrowing costs," he said, according to the newspaper.
The news report quoted a banker working on the IPO as saying $10 billion would be more than enough for the firm. Funds raised from the IPO would be used to pay back a $7.5 billion bridge loan to holding vehicle Rosneftegaz that let Russia take majority control of Gazprom last year, said the banker, who requested anonymity.
The IPO is scheduled for July.
