A unit of GLG Partners postponed the initial public offering of Sibanthracite Plc, a Russian coal miner. People knowledgeable about the deal cited sentiment regarding mining stocks as well as market conditions as the reasons behind such move.
The sources, who requested anonymity, said that the company did not have enough investor demand even on the sale's last day. Additionally, GLG Emerging Markets Growth Fund may possibly sell its shares in the Sibanthracite.
GLG Emerging Markets Growth Fund tried to sell 25% of its shares in the high-grade anthracite coal provider for US $7 to US $9.50 for each depositary receipt.
"Sibanthracite attracted significant interest and positive feedback," a company statement said. "However, current market conditions and investor sentiment towards the global mining sector led to the decision to postpone."
The planned IPO would have been the first in the U.K. by a Russian company this year. Last January, NTS Holding Plc, Russian railroad-freight carrier, deferred a London IPO amounting to US $500 million.
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