Vital Development delaying IPO
MOSCOW. April 12 (Interfax) - Chemical reagent company OJSC Vital Development Corporation is delaying an IPO that it planned to hold on Russia's MICEX exchange this month due to insufficient interest until the second half of the year.
The company said in a statement that it had received demand for just over 150 million worth of stock, but that it needed an estimated 560 million in capex.
Several larger Russian companies are holding IPOs round about now and investment funds are focusing on those. Also, institutional investors want to see financial reports for the whole of 2010 that reflect the production launched in Q4 and its results for H1 2011.
"We're a little disappointed that the IPO had to be put back, but the company is not dropping plans to acquire public status," its managing director, Alexander Plekhov, was quoted as saying.
RusAgro has already held an IPO this month, Euroset and Nomos Bank are in the process and Chelpipe , Russian Helicopters and Etalon Group are preparing for offerings.
Vital Development planned to sell up to 20% of its enlarged capital.
Vital Development Corp. has been preparing for an IPO for several years. The company brought its product to market in countries in the Commonwealth of Independent States, Asia, Africa, and South America last year. It created high-margin products last year that it plans to produce this year - test systems for immunoenzymometric analysis and automated analyzers for laboratory diagnostics.
The company was set up in 2006, and produces a significant array of reagent kits for testing lipid, liver, renal, pancreatic, diabetic, cardiac, electrolytic, and specific-protein function, among other products. Its sales revenues totaled 198.78 million rubles in 2009.
Alexander Plekhov and Yelena Skholl-Engberts are the company's equal co-owners.