UralChem Holding, Russia’s second-largest maker of nitrogen-based fertilizer, said it has postponed its planned initial public offering intended to raise as much as $642 million.
“The company’s management and its shareholder believe that in the current market conditions, the offering cannot be priced at a level which reflects a fair value of the company,” UralChem said in an e-mailed statement.
UralChem, which is controlled by chairman Dmitry Mazepin, posted a net loss of $77 million last year, compared with net income of $25 million in 2008, according to its IPO prospectus. Sales fell 44 percent to $949 million in 2009, and short-term debt was $534 million as of Dec. 31.
“We decided to postpone the IPO as we were not satisfied with the valuation that could be achieved in the current market conditions,” Mazepin said in the statement. “We may consider a public offering at another time in the future.”
UralChem was planning to use funds from the IPO to refinance debt. Borrowings increased to $1.42 billion last year, and UralChem pledged controlling stakes in three chemical plants as collateral to lenders, the company has said.