Companies pull London listings citing market volatility

Arqiva, expected to float valued at about £4.5bn, blamed ‘market uncertainty’ for not pressing ahead

Bakkavor, a supplier of fresh food to UK supermarkets, also cancelled its planned London initial public offering. Photograph: Matthew Lloyd/Bloomberg

Bakkavor, a supplier of fresh food to UK supermarkets, also cancelled its planned London initial public offering. Photograph: Matthew Lloyd/Bloomberg

 

Companies trying to list in London with an aggregate market valuation of about £7 billion have pulled their flotations, citing adverse market conditions despite high levels of activity on the capital’s exchange.

Arqiva, the TV, radio and mobile phone mast company, had been expected to float this month valued at about £4.5 billion, but said on Friday it would not be going ahead because of “market uncertainty”.

Bakkavor, a supplier of fresh food to UK supermarkets, also cancelled its planned London initial public offering. The company had expected to raise about £1.5 billion and was due to price its shares on Friday morning.

Also on Friday, EN+, Oleg Deripaska’s hydropower-to-aluminium conglomerate, priced its London flotation at the bottom of a previously announced range, with the stock debuting at $14 a share.

Bakkavor said it had received sufficient demand from financial institutions for its shares. However, a person close to the company said its directors and bankers had nevertheless decided that conditions had become unsuitable for a stock market debut.

That argument was echoed by advisers to Arqiva, who pointed to a number of underwhelming floats across Europe to justify its decision to postpone the listing. – Copyright The Financial Times Limited 2017