Metafrax abandoning IPO in medium-term
PERM. June 28 (Interfax) - Metafrax , a major Russian methanol and formalin producer, has abandoned the idea of holding an IPO in the next three to five years, company chairman Armen Garslyan told reporters.
He said the company had planned to use the money that could have been raised in an IPO to build an ammonia and carbamide plant. The company is still considering this project, but now plans to finance it with borrowing.
"We are holding negotiations with banks and we have an understanding of what pool of banks will finance this project. We are almost completely happy with the conditions. Therefore, there is no need for an IPO in the next three-five years," Garslyan said.
He said the final decision on building the ammonia and carbamide plant will be made in December.