Russian mining and steelmaking group Mechel announced that they will delay the Initial Public Offering (IPO) plan of the mining unit, stating that the main reason is the unfavorable market conditions.
Mechel has notified the banks hired to manage the IPO about the delay. Its initial plan was to sell a stake of 10 percent to 15 percent of Mechel Mining as early as this year in London or Hong Kong to raise as much as $1.5-2 billion.
The company picked JPMorgan Chase, Morgan Stanley and UBS to manage the IPO. If the IPO plan has not been put off, it would have been the largest trade in Russia's metals and mining industry this year