FRANKFURT Oct 17 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
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)