Georgia had hoped to raise up to $US 250m through the sale of up to 25% of GR, the country's monopoly rail operator, in an Initial Public Offering.

Prime Minister Mr Nika Gilauri told Reuters there was no direct link between decision to postpone the flotation and the poor response to Facebook's IPO last week because the two companies were targeting different investors, but he admitted the social media giant's float had 'frustrated' investors. "They think that if Facebook, one of the most successful companies in the world, did not do well, GR has no serious chances," he says.

Nonetheless, Gilauri stressed that the sell-off will go ahead if market conditions improve, either as an IPO or through the issuance of Eurobonds.