RusPetro Plc, an oil producer in Siberia, slumped to a record low after saying it’s postponing a bond sale designed to strengthen the company’s finances.
The shares plunged 16 percent to 43 pence, the biggest fall in a month and the lowest since the company listed on the London stock exchange in January last year. The volume of shares traded was almost 16 times the three-month daily average.
RusPetro has lost more than 65 percent since raising $250 million in a share offering on Jan. 18, 2012. The average share price target of seven analysts tracked by Bloomberg is 205 pence, almost five times the closing price.
“The company will consider recommencing the offering at a later date,” RusPetro said in a statement today, without giving a reason for the delay.
RusPetro hired Bank of America Corp., Credit Suisse Group and Deutsche Bank AG to manage the sale, Bloomberg reported two days ago. The company planned to sell as much as $350 million in bonds, a person familiar with the sale who asked not to be named said last month.
The debt issue was designed to repay an existing loan facility from OAO Sberbank. An outstanding shareholder loan from Limolines Transport Ltd. was to be converted into new ordinary shares subject to the success of the note sale, RusPetro said in a statement Jan. 25.