Credit crunch wipes $12 billion off Russia IPOs: report

By Simon Shuster

MOSCOW (Reuters) - The global credit crunch will knock about $12 billion off the amount likely to be raised through Russian initial public offerings (IPOs) this year, Moscow brokerage Troika Dialog said on Wednesday.

"The credit crunch followed by the stock market weakness has significantly influenced companies' plans to raise capital ... we expect many placements to happen only in 2009 if at all," Troika said in a report.

Troika revised its forecast for 2008 to $26 billion from $38 billion in IPOs, noting in the first four months of this year Russian companies raised only $3.7 billion through IPOs, 50 percent less than in the same period of 2007.

This downward trend will be less severe during the rest of 2008, Troika said, because of near-record oil prices and Russia's resilience in the face of the credit crunch.

But the London Stock Exchange (LSE.L) -- preferred venue for Russian firms listing abroad -- may still notice a reduction in the stream of new Russian paper.

The world's top aluminum producer, United Company RUSAL, was thinking of floating its shares this year, at least partly in London, but changed its mind after the credit crunch set in.

This postponement alone will suck $7.5 billion out of the IPO pipeline for the year, giving first place to mobile phone operator Megafon with a $6 billion placement in the works, Troika said.

Also expected this year are a $3 billion IPO of metals major Metalloinvest and $2 billion IPOs by Gazprombank, coal and mining firm Mechel Mining and power producer OGK-1.

Companies taken off of Troika's IPO list for 2008 included mobile phone retailer Evroset, brokerage KIT Finance, engineering firm SU-155 and media company Prof-Media.

In recent years Russia has emerged as one of the world's main sources of new public stocks offerings as its companies seek fresh capital amid oil-fuelled economic growth. Last year set a record with $34.4 billion raised in 33 IPOs.

But the global liquidity crisis sparked by mass defaults of risky U.S. mortgages has caused huge losses for some of the world's largest banks and cut appetite for risk across global markets.

(Editing by David Holmes)