THE London Stock Exchange’s reputation for probity will be put on trial on Monday when a High Court judge hears an application for judicial review of the listing of shares in Rosneft, the Russian state oil company.

The challenge by Yukos of the Financial Services Authority’s (FSA) decision to approve the listing has astounded the City and is being seen as a high-risk effort by Yukos to derail the $10.4 billion (£5.6 billion) offering.

The High Court agreed to consider the application on Monday, but Mr Justice Charles expressed doubts that the matter could be considered in the time available. “I fail to see how this case can be given proper attention in the time provided,” he said.

Rosneft and the FSA are keen that the matter be cleared up before Wednesday next week when the London Stock Exchange is due to admit the shares to the Official List. The High Court’s concern about timing exposes the risk that it may grant an interim injunction, suspending the FSA’s approval of the listing to give more time for the court to review the case.

In grey market dealings, Rosneft stock yesterday soared above the IPO price of $7.55 per share, rising to $7.95, valuing the company at $84 billion. Rosneft said that it had received applications for $15 billion in stock, of which a fifth came from strategic investors. BP said that it had been allocated $1 billion in the offering while CNPC, the Chinese state oil company, was allocated $500 million-worth.

City lawyers were sceptical that Yukos would succeed in its application. “It will suprise me if Yukos is able to claim that it suffers a loss if the flotation goes ahead,” Tim Field, of Simmons & Simmons, said. Yukos alleges that the principal asset of Rosneft, Yuganskneftegaz, was stolen from Yukos in a bogus auction organised by the Russian Government.

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