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. Last Updated: 07/27/2016

Troika Postpones IPO Plans Until After 2008

Investment bank Troika Dialog has postponed plans for an initial public offering until after 2008, as it may raise a better price after parliamentary and presidential votes, the bank's chairman said.

The investment bank, which has a sales force of 750, is still considering possible combinations or partnerships with Russian or Western banks, Troika chairman Ruben Vardanyan said Wednesday at the annual World Economic Forum in Davos, Switzerland. He owns more than 70 percent of the bank, and management and employees own the rest.

"We will do a lot of investment in the company in the next two years and look at opportunities about an IPO or something else after 2008" because investors may be "cautious" before they see the outcome of State Duma elections in December 2007 and presidential elections in March 2008, Vardanyan said. "We have huge potential to grow."

Russia's largest banks, such as Sberbank and Gazprombank, are planning stock sales to raise money and increase lending as demand for loans on the rise.

As many as 40 Russian companies will sell shares worth $30 billion this year, up from 29 last year, according to Renaissance Capital. Troika is probably worth between $2.5 billion and $3 billion, Interfax reported Dec. 11, citing Vardanyan.

Troika Dialog's stock turnover nearly doubled to $74 billion in 2005, accounting for 14 percent of total share transactions on Russian bourses and the over-the-counter market, the company's web site reports. Its money-management arm oversees more than $3 billion.

Troika was in talks with Russian, European, U.S., Japanese and South African banks on possible strategic partnerships, Vardanyan said last month. Troika was considering teaming with Singapore's state-owned Temasek Holding to make jointly direct investments, Vardanyan said in the statement.