Construction chemicals firm Polyplast pulls IPO
MOSCOW. Dec 6 (Interfax) - Construction chemicals firm OJSC Polyplast has decided not to proceed with an IPO on the MICEX exchange because it did not receive a satisfactory price offer from investors, the company said in a statement.
"For now the unfavorable situation in the Russian stock market prevents us from raising the necessary amount at what we consider to be a fair price for the sale of our shares," Ilsur Shamsutdinov chairman of the board of directors, was quoted as saying.
Polyplast could return to an IPO in the future. "We intend to continue pen and constructive dialog with institutional investors," Shamsutdinov said.
Polyplast originally announced it was accepting bids from November 26 to November 29, but then delayed this because to wanted to hold further meetings with investors.
Polyplast planned to place from 20% to 24% of increased charter capital or 2.5 million to 3.16 million common shares on the MICEX Innovation and Investment Market. The price range for the placement was 357-417 rubles per share and the entire company is valued at 4.463 billion to 5.213 billion rubles.
Finam, Promsvyazbank and Rye, Man & Gor securities organized the IPO. Promsvyazbank was appointed the market-maker for the IPO.
A company memorandum says that after the IPO there
Polyplast planned to raise 1.2 billion rubles. Executive Director Radik Fazlyev said the money will be used to create new distribution networks, to build new plants in the regions, to update capacity and to merge the company's R&D divisions into one center.
Polyplast accounts for 51% of the Russian construction chemicals market and for 70% to 80% of the naphthalene sulfonate segment. The company owns three out of the five plants in Russia (70% of capacity) that can synthesize naphthalene sulfonates - super plasticizing agents (basic concrete additives). The company is the sole Russian supplier of chemical additives for the cement industry.
Polyplast revenue to International Financial Reporting Standards (IFRS) climbed 37.6% year-on-year in January-September 2012 to 3.7 billion rubles. Net profit surged 140% to 200.6 million rubles. Gross profit climbed 32.3% to 1.5 billion rubles and EBITDA went up 47.41% to 574.27 million rubles.
