(Adds background, context)
By Noor Zainab Hussain
Oct 13 Auto parts maker TI Fluid Systems
(IPO-TIFU.L) said on Thursday it had cancelled plans to list on
the London stock exchange, the latest company to abandon an
initial public offering (IPO) and blame volatile markets.
Although stock markets are riding high - normally a good
sign for new issues - investors are wary of turbulence amid a
faltering global economy and following Britain's shock vote to
leave the European Union in June.
"The uncertainty is the challenge. Post Brexit, which is
still not that long ago, investors are still sorting their
investment strategies," said Ian Gorham, chief executive of fund
supermarket Hargreaves Lansdown.
Worldwide, money raised from IPOs fell by more than a third
to $79.2 billion in the first nine months of this year, the
lowest since 2009, Thomson Reuters data shows.
TI Fluid, based in Oxford, southern England but incorporated
in the United States, said last month it expected to raise about
600 million euros ($672 million) by listing in London.
The company, which designs and makes automotive fluid
carrying and delivery systems, had already delayed its IPO once,
shortly after the Brexit vote.
Its private equity owner, Bain Capital, could not
immediately be reached for comment. Bain bought TI Fluid in 2015
for about $2.4 billion, including debt.
Two other companies in Europe - British gym operator Pure
Gym and German real estate company OfficeFirst - cancelled IPO
plans on Tuesday, citing unfavourable conditions.
Last week, British energy supplier First Utility also
postponed plans to list shares.
Bookbuilding for UK waste management group Biffa's London
IPO closed on Wednesday. There has been no announcement so far
on the level of interest, which some bankers said suggested it
might also be cancelled.
A source familiar with the matter said Biffa, its advisers
and shareholders were still determined to get the IPO done.
Deutsche Bank, Goldman Sachs, JP Morgan
and Citigroup were acting as joint bookrunners for
TI Fluid's IPO. HSBC Bank was the lead manager and Lazard & Co
Ltd the company's financial adviser.
($1 = 0.8928 euros)
(Additional reporting by Esha Vaish in Bengaluru and Simon
Jessop in London; Editing by Susan Fenton and Mark Potter)