Stavropol-based producer of synthetic sapphire, used in electronic industry, and electrotechnical tools Energomera has postponed its IPO plans from this to next year due to unfavorable market situation, news agency RIA Novosti reports citing Valdimir Polyakov, the president of the company.
According to Mr. Polyakov, earlier the company planned to have IPO at the NASDAQ stock exchange and set up SPV Monocrystal Holdings N.V. The firm intended to list 25% shares and raise $200-$250m.
“Situation on our markets is such that overproduction in light diode and solar energy industry prevented our growth. Many companies all over the world have to stop production and experience multi-million losses, and we do not expect high growth either,” Mr. Polyakov explained.
Mr. Polyakov added that plans could be moved further if markets do not recover in the next six months, as they are expected to.
“Until markets recover there is no need for investment. Market recovery will lead to their fast growth, requiring large-scale investment that we will raise through selling shares at one of stock exchanges,” Mr. Polyakov explained.
Concern Energomera is a global leader in the market of synthetic sapphire for light diode industry and metallized pastes for photovoltaics, and the largest manufacturer of electronic electricity meters in Russia and CIS. According to the company’s estimates, it controls 20% of global market of synthetic sapphire. Last year the firm’s revenue totaled $297m, and net profit came in at $45m.