Georgian Railway postpones $1bn IPO

By bne IntelliNews May 25, 2012

bne -

The Georgian government has again postponed its planned IPO of Georgian Railway on the London Stock Exchange due to unstable market conditions.

Prime Minister Nika Gilauri said the listing of up to a 25% stake in global depositary receipts, which was due to take place on May 24, had been put off due to the unstable global markets, following consultations with bankers and investors. The listing will take place when with the situation is more stable. "Unfortunately, the international market has worsened, so that they do not advise to do this yet, and accordingly we rescheduled the process," Gilauri said in a statement.

Tbilisi decided to go ahead with the listing of the state-owned railway monopoly earlier this year as the economic climate appeared to have improved. However, growing problems within the Eurozone, in particular in Greece and Spain, have changed the situation for the worse.

This follows the decision to cancel several offerings on international markets in 2011, which were also put on hold because of poor market conditions.

The Georgian Railway IPO had been hotly anticipated, and at a price range at $15.25 to $19 was expected to give the company a valuation of up to $1bn.

The company is the sole company operating all railway activities in Georgia, operating on a similar model to regional US rail companies. By contrast, in most European countries separate companies have been set up to handle areas such as network maintenance, freight and passenger transport. The rail company is also a key part of the rail transit route for the Caspian oil-producing countries of Azerbaijan and Kazakhstan to deliver their oil to European markets.

Related Articles

Retail trade slows in Kazakhstan amid economic uncertainty

Naubet Bisenov in Almaty - A free-floating exchange regime for Kazakhstan’s currency, the tenge, is taking its toll on retail trade as the cost of imports rise. While prices have not changed ... more

bne:Chart - Russia begins to steady the ship according to latest Despair Index

Henry Kirby in London - Ukraine and Russia’s latest “Despair Index” scores suggest that the two struggling economies could finally be turning the corner, following nearly two years of steady ... more

New Kazakh central bank governor re-adopts free floating regime

bne IntelliNews -   The National Bank of Kazakhstan, the central bank, has re-adopted a free-floating exchange regime under the new governor, Daniyar Akishev, who has ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss