April 13, 2018 / 3:12 PM / in a year

UPDATE 1-Russia's IBS puts IPO on hold due to market volatility

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MOSCOW, April 13 (Reuters) - Russian IT services company IBS postponed its Moscow initial public offering on Friday, citing volatility in financial markets and adding to the growing fallout from U.S. sanctions.

IBS launched the IPO this month and sources told Reuters it aimed to raise around $100 million through the share sale on the Moscow Exchange.

But Russian assets have tumbled over the past week after the United States imposed new sanctions on Russia, with the rouble currency and stock indexes touching multi-month lows, clouding prospects for a number of Russian companies tapping equity markets.

“Increased volatility in the markets creates not the best conditions for the placement,” a spokesman for IBS told Reuters, adding it would resume the IPO once conditions improve.

Feedback from investors was “very positive” and the company was confident its business was fundamentally attractive, the spokesman added.

At the beginning of April, Russian online recruitment firm Headhunter Group filed with the SEC for a $250 million Nasdaq listing and Russia’s biggest poultry producer Cherkizovo announced plans to sell shares.

Headhunter and Cherkizovo did not reply to Reuters’ requests to comment on whether those plans were intact.

Other Russian companies in the IPO pipeline include insurer RESO and private healthcare provider European Medical Center

Italy’s Octo Telematics put its IPO on hold after sanctions were imposed on controlling shareholder Renova Holdings and on Renova’s Russian chairman, Viktor Vekselberg, two sources told Reuters on Thursday.

Octo said on Friday that its chief executive and chairman had agreed to buy a 20 percent share from Renova, in a move aimed at resolving issues deriving from the imposition of sanctions on the Russian group. (Reporting by Maria Kiselyova Editing by Christian Lowe and Susan Fenton)

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