Georgia, Tbilisi, May 24 / Trend N.Kirtzkhalia /
The Georgian government has postponed the IPO (Initial Public Offering) of Georgian Railway for an indefinite period, Prime Minister of Georgia Nika Gilauri said at a cabinet meeting on Thursday.
He said this decision was made due to difficult market conditions.
"Now the situation in the EU is very complex, due to the situation around Greece, so we thought that this time is not best for IPO," the prime minister said.
Application for participation in the IPO of Georgian Railways was supposed to be placed before May 23, and trading in shares of the company were to begin on May 24. Not the company's shares, but depositary receipts were to circulate on the London Stock Exchange.
The organizers of the IPO of Georgian Railway are Citigroup and Goldman Sachs banks.
Georgian Railway planned to sell 25 percent of its securities at a price of $15.25-19 per a depositary receipt. Total revenue from the IPO would be up to $250 million. In this case the company would be valued at $1 billion.