MOSCOW, Mar 11 (PRIME) -- Russian Railways has cancelled plans to hold an initial public offering (IPO) of French logistics group Gefco because investors are disappointed in the primary placement market, First Deputy CEO Vadim Mikhailov said at a briefing late on Tuesday.
“It has already been postponed… We have prepared all materials, made all necessary estimates, received all needed permits for the sale. But there were only a handful of deals on the London’s IPO market at the end of 2018 and the beginning of 2019,” Mikhailov said. “Investors are just disappointed in the IPO market.”
Russian Railways owns 75% in Gefco, while Peugeot-Citroen Group (PSA) owns 25%. Gefco said in 2018 it may hold an IPO at the Euronext exchange in Paris in 2019 if market conditions are good and all necessary approvals are received. The company also expected Russian Railways to cut its stake in Gefco to less than 50%, and PSA may reduce its stake to less than 10%.
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