Rostelecom plans IPO for Solar subsidiary after floating RTK-DC on exchange

MOSCOW. Nov 12 (Interfax) - PJSC Rostelecom plans to hold an IPO for its Solar Group information security subsidiary after floating RTK-DC on the stock exchange, Rostelecom CEO Mikhail Oseevsky said during an online conference for investors.

"Well, basically, yes," Oseevsky said when asked whether Rostelecom plans to take Solar public.

Oseevsky said that it is rather complicated to name the expected timing of the IPO for JSC Data Storage Center (DSC, RTK-DC brand) given the market situation.

Rostelecom said earlier that an autumn window was being considered for listing RTK-DC on the stock exchange. Oseevsky said in October that the company was wondering whether to float its cloud business now or wait until later due to the market situation. DSC was transformed from an LLC into a JSC on November 7.

A decision was reached at the end of September to transform Solar Security LLC, the Solar Group's main legal entity, into a joint-stock company. At the time, Solar Group called it a technical move and attempt to comply with best corporate governance practices, including from the point of view of the optimal shareholder structure.

Asked by Interfax whether the reorganization meant preparation for a possible IPO, the company said: "Solar is actively developing and considering various strategic development options, including opportunities in the capital market. However, it is too soon to talk about any specific plans now."

The company said the reorganization process would take at least three months, and the company could abandon it at any time.

Solar Security LLC was registered in March 2015. Authorized capital is 2.9 million rubles. Key areas of business are information security outsourcing, developing proprietary products, integrating complex solutions, training information security specialists, analytics and investigating cyber incidents. Rostelecom acquired the company in 2018.