Teorema Postpones Its IPO

Teorema Holding, the parent company of real estate developer Teorema, said Monday that it had postponed an initial public offering of shares because of poor market conditions.

"We decided to postpone the IPO as we were not satisfied with the valuation that could be achieved in the current market conditions," Teorema Holding executive chairman Igor Vodopyanov said in a statement.

Teorema had planned an IPO of Global Depositary Receipts on the London Stock Exchange and appointed ING Bank, Merrill Lynch International and Renaissance Securities Limited as joint global coordinators and bookrunners.

Last week, Teorema set a preliminary price range for the IPO at $10 to $14, as it was seeking to raise $400 million to $500 million to fund new site acquisitions for future development.

It is currently focused on developing five large sites, totaling around 383 hectares in St. Petersburg, where it aims to build about 3.48 million square meters of commercial and residential property.

Teorema has so far completed 92,000 square meters of commercial space, including three business centers and a warehouse terminal.

It said its property portfolio was valued in September at around $1.41 billion by the Russian arm of Cushman & Wakefield Stiles & Riabokobylko.

"We may consider a public offering at another time in the future," Vodopyanov said.