Thursday 29 September 2016

Global volatility scuppers flotations, with 20 IPOs pulled in US and Europe so far this year

Tim Wallace

Published 14/02/2016 | 02:30

So far this year, 20 companies in the US and Europe have pulled their planned stock market
listings. (Stock image)
So far this year, 20 companies in the US and Europe have pulled their planned stock market listings. (Stock image)

Another five US companies have ditched plans to go public as volatile markets and concerns over global growth have dampened investor appetite for IPOs.

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So far this year, 20 companies in the US and Europe have pulled their planned stock market listings, the worst start to any year since the depths of the financial crisis in 2008, according to figures from Dealogic.

The biggest potential deal put on the back burner was airport restaurant operator OTG EXP, which wanted to list on the Nasdaq at a value of $552.5m (€491m).

But crumbling equity markets have made it difficult for companies to attract investor interest and achieve the right price for their shares.

OTG EXP postponed its stock market debut this week and said it would "continue to evaluate the proposed offering as market conditions develop". There were no stock market listings in the US in January, but four companies have made it to market since the start of the month, all in the healthcare sector.

In Europe, six deals worth a potential $1.1bn (€978m) have been pulled in Italy, the Netherlands, Spain, Poland and the UK since the start of the year, according to the data. That figure represents the highest number of aborted floats in the market since 2010.

The IPO that was cancelled in the UK was Angus Energy, which had hoped to float on London's junior Aim market.

Some UK companies, however, have managed to go public despite the market turmoil.

House builder Countryside floated on Friday with a valuation of £1bn (€1.29bn) and betting group CMC Markets listed for £691m (€890m).

The Clydesdale and Yorkshire Bank, run by former AIB boss David Duffy, achieved a valuation of £1.6bn (€2bn) when it went public at the start of this month.

©Telegraph

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