Brexit Concerns Scare Off Another London IPO Hopeful, Though ConvaTec Plows On

Brexit-related market volatility slayed another London IPO hopeful Thursday as Bain Capital-backed TI Fluid Systems pulled its London listing plan.

"TI Fluid Systems Limited has decided not to proceed with its proposed initial public offering at the current time due to market conditions," the car-parts company said in a statement.

Its retreat follows CCMP Capital Advisors and Hermes GPE-backed Pure Gym Group's decision to scrap its IPO Tuesday because of "challenging" IPO conditions and casts a pall over other IPO candidates which began queuing up to list in London shortly before a new hawkish stance from Prime Minister Theresa May on the eventual shape of Brexit sent the pound to multi-decade lows and propelled benchmark indices to feverish heights in tandem.

Creditor-backed waste management company Biffa was last night reportedly contemplating cancelling its IPO or slashing the price tag.

Nevertheless, Nordic Capital and Avista Capital Partners-backed medical devices maker ConvaTec pressed ahead with its listing plans with the announcement of an IPO price range Thursday. It will look to sell shares at a price of 225 pence to 275 pence, which would translate into a market value of £5.04 billion ($6.01 billion) at the upper end. It expects to price the shares on October 25.

Other IPOs in waiting include Vista Equity Partners' financial services software business Misys, which hopes to list with a valuation of £5 billion or more.

Market conditions have also frayed investors' nerves elsewhere on the continent.

Last month Telefonica (TEF)  pulled plans to sell as much as 40% of its recently created infrastructure unit Telxius Telecom. The offering could have valued its equity at up to €3.75 billion ($4.1 billion). And RWE spinoff Innogy, a renewable power producer, is trading only marginally above its issue price after attaining a €20 billion valuation in a Frankfurt IPO earlier this month.

Bain Capital, TI Fluid's owner, is expected to adopt a "wait and see" approach and may yet make another attempt to list.

Bain and partner Advent International completed the IPO of Danish payment systems maker Nets last month. The listing valued the business at 30 billion Danish kronor ($4.5 billion).

TI makes car components that allow for the flow of fuel, brake fluid and heating, ventilation and air conditioning systems. It had revenue of €3.1 billion and adjusted Ebit of €316.9 million in 2015.

The FTSE 100 Thursday morning was down 0.69% at 6,975.87. The pound was down 0.23% against the dollar at $1.2176. It bought $1.4877 just before the outcome of the U.K.'s June 23 Brexit.

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