LeasePlan, the private equity-backed car leasing group that announced plans to go public last week, has abruptly pulled its initial public offering citing “market conditions”.
Long term rentals for new cars has become big business in Europe, while LeasePlan’s smaller used car unit has also been booming. French rival ALD floated last year with a valuation just shy of €5.8bn.
London’s market for IPOs has faltered in recent weeks, however, with two high-profile listings suffering hefty falls in their share price after their market debut. Aston Martin Lagonda is currently trading at £15.25, almost one-fifth below its listing price of £19 a share.
Funding Circle, which priced its shares at the end of last month, is down 13 per cent from its IPO price after a slight recovery in its shares in recent days.
Bankers cautioned the twin disappointments would have a dampening effect on other listings and could prompt a pause for the rest of the year as companies — and investors — take a wait-and-see approach as Brexit looms.
LeasePlan had announced its intentions the day after Aston Martin’s flop. Since then, market jitters have escalated, encompassing most global equity markets by Thursday morning in London
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