Valinor, a Russian agriculture group that had planned to be the first company from its country to list in Warsaw, has postponed its offering of shares citing “adverse market conditions”.

The company suffered from poor subscription as it closed the books on Thursday evening on its initial public offering. The company had hoped to raise up to 948m zlotys ($344m) from the sale of new and existing shares, and planned to use the money to finance land acquisitions and invest in production.

Valinor’s failure to get the deal off the ground could be the result of unfamiliarity among Russian investors with the Warsaw Stock Exchange, Reuters reported.

The postponement of the deal comes just two days after Ukrainian sunflower oil producer ViOil pulled the plug on its Warsaw listing, also due to unfavourable market conditions.

Despite the latest setbacks, Warsaw is still cultivating a reputation as regional hub for agriculture listings. This is especially true for Ukrainian companies. There are now 10 firms from that country listed on the WSE, most of them from the agriculture sector.

And the Russians are expected to start paying greater attention to Warsaw as well. Poland’s pension funds are permitted to buy only WSE stocks, meaning there is a guaranteed pool of buyers in Warsaw that that understands agriculture firms. Notwithstanding Valnor's troubles, Warsaw is poised to field further interest from Russian agriculture firms.

See also:
Warsaw reels in first Russian IPO - FT Tilt
ViOil IPO - the Ukrainians march on Warsaw - FT Tilt
Polish bourse pursues foreign groups as it vies to lead central Europe - FT
The Russians are coming - Warsaw’s eastern appeal - FT Tilt