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. Last Updated: 07/27/2016

RESO Shelves Plans to Float 20% Stake

Retail insurance company RESO-Garantia has canceled plans to float a 20 percent stake on domestic bourses, Vedomosti reported Thursday, quoting unidentified sources.

RESO, the country's fourth-largest insurer, had wanted to raise up to $500 million and become the country's first listed insurer.

Vedomosti quoted one source close to the company as saying shareholders had decided to cancel a road show they had planned to start on June 10 and to postpone the IPO after they saw the results of pre-marketing.

The paper also quoted a banking source as saying RESO owners were not happy with the level of demand from investors and the price proposed by organizers. Brothers Sergei and Nikolai Sarkisov control the company, which has 800 points of sale.

The European Bank for Reconstruction and Development said earlier this month it would buy 10 percent of RESO for $150 million.

The Russian insurance market is booming, and total insurance premiums have grown 3.5 times in the last four years, according to Finance Ministry data. It is expected to reach 750 billion rubles ($29 billion) by the year's end.