IPO postponed due to tough market conditions
Article Date: Nov 15 2007A company that was expected to float on AIM on 16 November has postponed its initial public offering (IPO). Timber harvesting group Russian Timber made the decision due to a ‘difficult investment climate’, according to CEO Leo Hambro.
Hambro adds: ‘Though disappointing, [this decision] will not stop us from implementing our strategic growth plans. We believe that even in a difficult environment the Russian forestry and wood products sector has great promise.’
Russian Timber was expecting to raise £125 million through the placing. The group claims to be the second largest business of its kind in Russia by volume, and has harvesting rights over 2.4 million hectares of forest in Russia, an area larger than the size of Wales.
International banker Citigroup was acting as sole global co-ordinator, bookrunner and nomad for the offer, with London-based investment bank City Capital as co-lead manager.
The postponement of Russian Timber Group’s IPO follows research from accountancy group Deloitte that shows funds raised on AIM in September were at their lowest ebb since 2005. However, the third quarter of 2007 as a whole saw £3.3 billion raised by AIM companies, an increase of 45 per cent on the same period last year.
