Russia has put the initial public offering of Sovcomflot on hold to be postponed to 2014. The decision was made due to prevailing market conditions, according to Deputy Transport Minister Victor Olersky.
The announcement was made to reporters in St. Petersburg. The shares of Sovecomflot were being sold due to the privatization plan of the government.
Sovcomflot is a Russian maritime shipping firm that specializes in the transport of petroleum and liquefied natural gas. It is a 100% state owned corporation established in 1995. In 2007 to 2008, Sovcomflot absorbed the assets of Novoship to become the largest shipping company in the country.
The decision to undertake an IPO is to cover Sovcomflot's investments as well as pay off debts absorbed from Novoship. Unfortunately, current market conditions were not deemed favorable, resulting in a withdrawal of the application for the initial public offering.
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