Richard Ogdon, executive director of Uralsib bank, says: “There’s a risk of the IPO market being ruined by overexuberance.” His comment comes after Morgan Stanley dropped out last month from the IPO of Russian meat processor Cherkizovo after a disagreement over the company’s valuation.
Another book-runner, Russian brokerage Troika Dialog, later also walked away from the deal, leaving two Russian brokerages – Renaissance Capital and Gazprombank – as sole book-runners. Uralsib later joined the syndicate.
Morgan Stanley valued the company at between $500 million and $600 million, which is half what Renaissance Capital valued it at.
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