FSA asked to probe Uralchem flotation

The Financial Services Authority has been asked to probe Russian fertiliser company Uralchem in relation to its £400 million London listing.

It comes after a former minority investor wrote to the regulator claiming that the company, which has many debts, does not "adequately disclose risks" to its business in its prospectus for the initial public offering (IPO).

According to the ex-investor, Uralchem's prospectus "falls far short" of explaining to the "severe environmental criticism" levelled at the company in recent years and threats of legal action from campaigners and Russian pollution authorities.

A spokesman for Uralchem told the Times: "All the information about the company's financial position is disclosed in its preliminary prospectus in the right order, based on audited financial statements. Neither the company nor its subsidiaries have had any claims or orders from state authorities regarding its solvency."

Meanwhile, Urlachem has decided to push ahead with the flotation of 40 per cent of its new stock through the placement of global depositary receipts.