O1 Properties Pulls Out Of London IPO

O1 Properties, a Russian private investment and development firm owned by businessman Boris Mints, will suspend its Initial Public Offering in London due to unfavorable market conditions, the company said on Friday.

“Our proposal has been subject to close attention from international investors. Nevertheless, we have decided not to hold the IPO amid the current market conditions,” said Board Chairman, Dmitry Mints, in a statement, and adding “In future we may discuss an opportunity to return to the markets and hold the IPO.”

The company had planned to float about 40 percent of its shares as Global Depositary Receipts at a price of $11-$13, valuing O1 between $977 million and $1.078 billion, and had mandated Morgan Stanley, VTB Capital, UBS and UniCredit to manage the IPO.

The company announced its IPO plans, under which it expected to raise nearly $425 million, on April 18. O1 intended to use the IPO proceeds to buy Moscow business centers Ducat Place III and Silver City and repay debts.

“Investors were interested in [the company] but the markets did not allow holding a successful offering that would satisfy all parties also due to [debt problems] in Greece,” a banking source told Prime news agency.


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