Russia's Strikeforce Mining & Resources (SMR), has decided to put off its Hong Kong initial public offering, a source said on Sunday, joining a series of IPO delays in the territory due to sharp falls in global markets.
SMR, the fifth-largest primary molybdenum mine producer in the world and Russia's biggest ferromolybdenum producer, said earlier in May that it planned to raise between $150 million and $200 million in Hong Kong.
"We have decided to delay the SMR IPO until better market conditions," the source, who is familiar with the deal but declined to be identified as he was not authorised to speak to the media, told Reuters.
"This should be no surprise due to recent global events. We had positive feedback from investors regarding the company, industry, etc, but given the overall markets, we are evaluating our options on IPO timing."
SMR will consider reviving plans when there is more stability in the markets, the source said.
Just days ago, China Tian Yuan Mining Ltd and Swire Pacific shelved IPO plans in Hong Kong as global debt worries dented investors' appetite for companies' fund raisers.
Tian Yuan was due to raise $450 million, while Swire Pacific had planned to list its property unit with a $2.7 billion IPO.
SMR, which kicked off pre-marketing on Monday, is owned by billionaire Oleg Deripaska's En+ Group Ltd It would have become the second Russian company to list in Hong Kong, after aluminium producer UC Rusal.
The SMR deal is being handled by BOC International, Deutsche Bank and Renaissance Capital.
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