Russian Helicopters pulls $2.4bn IPO

KREMLIN-BACKED defence firm Russian Helicopters has pulled its joint Moscow and London initial public offering (IPO) after failing to find sufficient demand for its shares, a source close to the deal told City A.M.

The firm becomes the latest in a string of companies, including some Russian ones, to put their London listing plans on ice, following a rocky period for stock market floats.

Russia’s primary helicopter maker had been looking to finalise a price for its shares by tomorrow, in a sale that would have netted the country's government more than $250m.

The total size of its offer, including new shares in the company, had been set to exceed $500m, and the business was set to be valued at up to $2.4bn.

Management and bankers from BNP Paribas, Bank of America Merrill Lynch and VTB Capital had scrambled to find investors in Moscow and London, in a global roadshow that ended today.

The former Soviet military aircraft producer had set the price range for its float at between $19 (£11) and $25 per share and global depository receipt (GDR) at the end of last month.

A full statement from Russian Helicopters is expected shortly.