UC RUSAL won't hold IPO this year because of global credit crunch

MOSCOW - United Company RUSAL (UC RUSAL) will not hold its initial public offering (IPO) this year because of adverse market conditions in the wake of the global credit crunch, several sources close to the company told Vedomosti. Earlier press reports indicated that the world's largest aluminium producer could raise up to 9 bln usd by listing 25 pct of its shares. Separately, Uralsib analyst Dmitry Smolin told the newspaper that an IPO of this size would be too large for the market to digest given the current liquidity crisis. A RUSAL spokeswoman told the newspaper that the company has not diverged from its original plan to hold an IPO within three years of its formation in March, 2007. The aluminium giant was formed via the merger of Rusal, Sual International Ltd and the alumina assets of Switzerland's Glencore International AG. Rusal controls 66 pct of the enlarged company, while Sual owns 22 pct and Glencore 12 pct.