Temasek, the Singaporean state investment company, spurned the chance to acquire a large stake in Rosneft’s $10.4bn initial public offering after deciding the shares in the Russian state-controlled company were over-valued.

Sources close to the company said Temasek, recently on the acquisition trail across Asia, had considered investing several hundred million dollars in Rosneft. However, it is understood Temasek’s investment managers balked at the $7.55-a-share pricing. Temasek’s decision echoes that of several other global institutional investors that snubbed the offer because of pricing.