TMK Ipsco postponed the IPO on the New York Stock Exchange, during which it was planned to raise up to $ 535 million. Mr. Pumpyansky got into the so-called "Kremlin report" of the US Treasury, but in TMK they say that the postponement of Ipsco's placement was caused by " record volatility "in the US stock market.
TMK Ipsco, a member of TMK, Dmitry Pumpyansky, said that it postpones the initial public offering. Recall, as early as January 29, the company said that it began the IPO process on the New York Stock Exchange, where it planned to sell 38.3% of the shares for $ 465-535 million (26% of Ipsco shares worth $ 316-364 million was to be sold by Russian PJSC TMK, additional emission of the American company). Given the mandate of the IPO organizing banks for the sale of an additional 3.48 million shares of Ipsco from the TMK package, the total share of PJSC in the US company could be 58.4-61.7%.
"Although we received considerable interest from potential investors, the continuing volatility of the market and the economy are not optimal conditions for the initial public offering," said Peter Golitsyn, Chairman of the Board of Directors of TMK Ipsco. He added that the company "has always made decisions in the interests of shareholders, employees and customers of the company and will continue to do so".
TMK Ipsco owns and operates 11 plants in the US and Canada with an aggregate capacity of about 1.5 million tonnes of pipes per year (mainly OCTG - oil and gas pipes). Until 2015, the division provided the group with about a fifth of revenue, since 2015 its performance began to deteriorate amid lower oil prices and a drop in drilling volumes, but in 2017 Ipsco again went into profit. At the end of the year, the American Division shipped 800 thousand tons, almost twice as much as in 2016. Ipsco's revenue for 2017 should reach $ 1.06 billion, adjusted EBITDA to $ 128 million, and net profit to $ 52 million.
TMC Deputy Director for Strategy and Development Vladimir Shmatovich also noted that "despite the great interest of investors, Ipsco postponed IPO due to unfavorable market conditions." "The American stock market at the beginning of the week demonstrated record volatility, which caused the cancellation or transfer of a number of IPOs in the US market," the top manager added. US stock indices on Feb. 6 sank by 3.8-4.6%. This decline has not been since August 2011, when Standard & Poor's agency reduced the credit ratings to thousands of municipal loans with "direct dependence on the US government" from the AAA level, including the obligations of mortgage agencies Fannie Mae and Freddie Mac. Then, in one day, stock indices fell by 4-9%. On Thursday, February 8, the markets continued to fall: the Dow Jones industrial index collapsed by 4.15%, the NASDAQ high-tech companies index by 3.9%, the broad market index S & P 500 by 3.75%.
Mr. Shmatovich stressed that the company "did not cancel, but merely postponed the placement of its shares until the moment the market stabilizes steadily." Documents submitted and agreed by the US regulator, continue to be valid. TMK already planned to withdraw the American division to the stock exchange in 2014-2015, but the plans were canceled due to the fall in oil prices.