State-controlled Russian Helicopters pulled its planned US$500 million London initial public offering (IPO) yesterday after failing to persuade investors it was worth the value it had set it sights on.
Confirming a Reuters report on Tuesday that it would not go ahead with the listing, the company said it believed people needed more time to consider the investment.
“We are … very conscious of the value of our asset,” said Andrei Reus, chief executive of the company’s major shareholder, state defence industry holding Oboronprom.
“Based on constructive conversations we have held with potential investors over the past few weeks, we believe market participants will benefit from more time to reflect upon the true value and growth potential of our business.”
Order books on the offering were not covered when they closed on Tuesday, sources close to the deal had told Reuters. The planned listing, of up to US$250 million new shares as well as US$250 million existing shares, was part of a wide-ranging government privatisation plan that will see it sell down stakes in key assets and bring in foreign investors. Bank of America Merrill Lynch, BNP Paribas and VTB Capital were organising the offering.