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Novatek delays IPO roadshow



By Upstream staff 

Russian gas producer Novatek has delayed a roadshow of its share placement in London, due to open tomorrow.

"The roadshow is slightly delayed. It may begin on Monday at the latest. There are many rumours surrounding the delay, but the main reason is still not clear to me," one banking source told Reuters.

Another source said the delay was only for two days. He added the marketing period would then last two weeks with the final pricing expected after 20 July. The company's valuation ranges between $4 billion-$6 billion according to different analysts.

Novatek was expected to begin the roadshow on 6 July and proceed with the IPO in London within a week after that. Russia's market watchdog allowed Novatek to list up to 30% of its shares abroad.

Novatek, which has around 5% of its shares listed in Moscow, named international banks Morgan Stanley and UBS Investment Bank co-ordinators for the placement while the same two banks and Credit Suisse First Boston would be book-runners.

French giant Total has said it would scrap its plan to buy 25% of Novatek if the latter decided to go ahead with a major IPO as there would not be enough shares available for the transaction with Total.

Total announced its plan to buy into Novatek in September but the deal has become bogged down in a Russian antitrust investigation and a pricing dispute about the deal, initially estimated at $1 billion.

In February, Novatek sold about 3% of its shares to institutional investors. The International Finance Corporation also bought 1% of the company, which is controlled by private shareholders led by businessman Leonid Mikhelson.


Tuesday, 05 July, 2005, 14:52 GMT  | last updated: Tuesday, 05 July, 2005, 14:52 GMT

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