Russia's Domodedovo airport delays IPO

30th May 2011, Comments 0 comments

The offshore holding company that operates Russia's largest airport, Moscow's Domodedovo, on Monday announced that it would delay its planned IPO in London, citing market conditions.

The holding company DME Limited said in a statement that its management and shareholders "believe that in the current market conditions the offering cannot be priced at a level which reflects a fair value of the company."

The company, which is registered on the Isle of Man off the coast of Britain, added that it may consider a public offering of the airport "at another time in the future when market conditions improve."

Domodedovo, Russia's only privately controlled airport, has been rebuilt from an ageing Soviet relic to a bustling hub that is Russia's largest in terms of passenger numbers.

A total of 77 airlines operate out of the airport, including British Airways and Lufthansa.

The airport's owners came under pressure from Russian authorities over flaws in its safety procedures after a suicide bomber triggered an explosion in the arrivals hall in January, killing 35 people.

Prosecutors criticised the company's opaque ownership structure saying its foreign offshore ownership was "unacceptable" and a security threat.

When announcing the planned IPO earlier this month, DME Limited named its sole owner as Dmitry Kamenshchik, listed as worth $1.1 billion by Forbes magazine.

The holding was planning to sell up to 20 percent of its shares at the London stock exchange, the Russian news agency Interfax reported.

© 2011 AFP

0 Comments To This Article