By Ivan Anderzhanov in Moscow
Russian oil industry services firm Eurasia Drilling yesterday annouced it had cancelled plans to place Global Depositary Receipts (GDRs) after bids failed to match its expectations.
Investment bankers at JP Morgan and Alfa Bank will lose out having been mandated as joint bookrunners. JP Morgan was also the sole global coordinator for the placement.
Eurasia had intended to raise cash for the dividend payout by placing at least 11.6m GDRs. The one-off interim dividend to shareholders was also canned.
The company’s chief financial officer W. Richard Anderson said there had been adequate demand but Eurasia felt the offered price fell short of its underlying value.
In a statement, Anderson added: “The company has no further plans to dispose of its treasury shares at this time. We expect our business will continue to grow and provide excellent returns to our shareholders.”
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