NefteTransService not to readdress IPO plans until freight market picks up - co -owner
ST. PETERSBURG. June 21 (Interfax) - NefteTrasnService (NTS) will not readdress plans for an IPO until the rail freight market recovers, the company's co-owner, Vadim Aminov, told Interfax.
"We're not yet returning to those plans. We think this would be premature in the current state of the freight market," Aminov said.
"We won't go for an IPO until the market recovers," he said.
It was previously reported that NTS intended to have its IPO on the London Stock Exchange (LSE) in H1 2013. The company expected to place around 25% of its enlarged charter capital. The transaction would only have comprised shares from the additional issue, with the exclusion of the green shoe option (up to 10% of the IPO volume). According to unofficial information, all of the group's shareholders intend to provide shares for the option. Earlier, NTS had tentatively scheduled its road show for April.
NTS has been shipping freight by railway since 2006 with a focus on oil and petroleum products, iron and manganese ore, ferrous metals, coal and building materials in Russia and Kazakhstan. At the end of last year, the company was operating 64,000 railcars (39,550 gondola cars and 24,450 tankers), as well as 43 locomotives. The group's parent company NTS Holding, which belongs to the brothers Vyacheslav and Vadim Aminov, owns 67.5% of its shares. Member of the board of directors Alexei Lichtenfeld owns 10%, and General Director Alexander Tertychny has 10%.
