RUSSIAN coal producer Sibanthracite has been forced to delay its planned stock market listing after failing to cover its order book.
The company, which had been due to go public last Friday, is thought to have only received orders for around half the available shares.
The decision is a setback for London’s market for initial public offerings, which has sprung back to life after being moribund for most of 2012.
However, Sibanthracite blamed market conditions and “investor sentiment towards the global mining sector” as the reasons it was forced to postpone the deal.
Foreign miners have been some of the best performers on the London equity market over the last few years but investors have fled the sector in recent months as China’s economic growth shows signs of stuttering.
GLG’s Emerging Markets Growth Fund had been due to sell its entire 25 per cent holding in the form of global depositary receipts. Demand for the company’s high quality coal has fallen as steelmakers reduce their output.