VSMPO-Avisma has rolled back its IPO

Titanium corporation VSMPO-Avisma has rolled back its IPO for an indefinite period of time.

Russian corporation VSMPO-Avisma, the world’s biggest manufacturer of titanium products for the aerospace industry has decided to postpone its initial public offering for an indefinite period of time. For the record, state-run Rosoboronexport became VSMPO-Avisma’s new owner at the end of 2006 after picking up its equity stakes from the corporation’s previous owners.

From now on the company’s owners will focus all their efforts on boosting output and raw material (ilmenite concentrate and titanium sponge) supplies, as well as on ramping up titanium products manufacture. After production targets are met (some 32,000-35,000 t of titanium a year) Antanta Capital expects the corporation to go public.

It’s noteworthy that in connection with the robust expansion of the aerospace industry worldwide, consumption of titanium and titanium-based alloys is growing at breakneck speed. Specifically, American corporation Boeing and European concern EADS, the world’s largest aircraft builders, have announced on numerous occasions their intention to ramp up aircraft production in the next five to seven years. Since VSMPO-Avisma is a key supplier of titanium products to these companies, tangible growth in consumption of Russian titanium can be expected.

Furthermore, yesterday the media wired that VSMPO-Avisma could decide to pay out dividends based on RAS, not IAS net income, as expected earlier.