FRANKFURT, Oct 17 (Reuters) - Dutch chemical technology firm Avantium has mothballed plans for an initial public offering (IPO) as jittery markets deterred potential investors, two people close to the matter said.
Cancellation of the IPO comes after groups like UK-based groups TI Fluid Systems and First Utility as well as Germany’s OfficeFirst pulled their plans to list on the stock market.
Although stock markets are riding high - normally a good sign for new issues - investors are wary of turbulence amid uncertainty over China’s growth and following Britain’s shock vote in June to leave the European Union.
Avantium had planned to use the proceeds of its IPO to fund production of plant-based plastics for Coca Cola bottles and Danone yogurt cups, people familiar with the plan had told Reuters.
Avantium, which had already tried to float in 2007, and Germany’s BASF said last week they would set up a joint venture and build a facility to produce chemical building blocks from plant-based sugars.
BASF said that financing of the planned facility had been secured independently of any developments at Avantium.
BASF declined to comment on Avantium’s IPO plans. Avantium also declined to comment.
Spun off from Royal Dutch Shell in 2000, Avantium has developed a chemical production procedure that feeds on fructose from plants rather than conventional oil derivatives. (Reporting by Ludwig Burger; Writing by Arno Schuetze; Editing by Maria Sheahan)