Promsvyazbank Delays IPO Over Market Valuation

Promsvyazbank, one of Russia’s largest privately-owned banks, has indefinitely delayed an initial public offering of 20 percent of its stock in London and Moscow due to a low valuation by investors, Kommersant business daily reported on Tuesday.

The bank had difficulty filling the IPO order book even at the lower price range. Investors currently lack sufficient amounts of freely available cash to buy securities whose liquidity is not entirely clear, the paper said, quoting market sources.

Pricing indications from investors in the market had not matched what the bank or its shareholders “consider to be fair value for the growth prospects it offers,” Promsvyazbank said in a statement posted by the London Stock Exchange on Monday.

Promsvyazbank, controlled by the Ananyev brothers who also have holdings in information technology, media, insurance, industrial companies and real estate, announced two weeks ago a price range for its initial public offering at between $10 and $12 per Global Depositary Receipt on the London Stock Exchange and at between $13.33 to $16 per 10,000 ordinary shares on the Moscow Exchange.

The price range indicated Promsvyazbank was expected to raise $345-414 million from the London IPO.


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