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Report: Reso Garantia shelves IPO plans

Russian insurer OAO Reso Garantia decided to postpone its initial public offering, planned for 2018, Vedomosti reported May 29.

Reso Garantia's shareholder Sergey Sarkisov said during a meeting with the heads of the company's branches that an IPO would "not make sense" in the current market conditions. He also noted that if the IPO were to take place in the existing market environment, the company's shares would be priced with a discount of between 20% and 40%, a source told the newspaper. Russian analysts estimate the current value of the company at around 205 billion Russian rubles, Vedomosti said.

Reuters reported in March that Reso Garantia planned to carry out an IPO in April and selected organizers for the offering. Vedomosti also said at the time that French insurer Axa, which owns a 36.7% stake in Reso Garantia, wanted to sell some of its stake during the planned IPO, but would keep a blocking holding in the insurer.

This is not the first time that Reso Garantia changed initial public offering plans. The company already planned to float a stake in 2007, but in the end it decided not to go ahead with the IPO and sold some of its shares to Axa, Vedomosti noted.

As of May 28, US$1 was equivalent to 62.37 Russian rubles.