Russian Timber Group (RTG) Ltd has postponed its planned float on the London Stock Exchange’s (LSE’s) Alternative Investment Market (AIM), citing a “difficult investment climate”.
RTG had planned to raise between £100-125m by becoming the first Russian forest products company listed on the LSE with a share price between 90-110 pence.
RTG chief executive officer Leo Hambro said that the decision was “disappointing” but added that it would not stop the company from progressing with its “strategic growth plans”.
“This decision has been made in response to the generally difficult investment climate and, though disappointing, will not stop us from implementing our strategic growth plans,” said Mr Hambro.
“We believe that even in a difficult environment the Russian forestry and wood products sector has great promise and remains a fundamentally attractive investment proposition.”
Mr Hambro added that “the RTG business has excellent prospects” and, in an earlier statement, said that its proximity to “the expanding markets in China and Asia” would help facilitate growth.
