Litigation funder Vannin Capital pulls London float blaming market conditions

James Booth
Inside The London Stock Exchange
Follows muted stock market debuts for Aston Martin and Funding Circle (Source: Getty)

Litigation funder Vannin Capital has cancelled its London initial public offering (IPO) blaming market volatility.

Vannin, which finances litigation for businesses and law firms in exchange for a slice of any settlement, announced its intention to float last month.

Market sources said the projected float could have valued the business at up to £1bn.

Read more: Aston Martin and Funding Circle shares continue to fall after IPOs

Vannin chief executive Richard Hextall said: “Although the investor roadshow generated strong indications of support from a high-quality group of institutions, management have concluded that the volatility experienced in the equity market in the last two weeks has led to conditions that are not conducive to an IPO, and that Vannin would be best served by postponing its proposed listing.”

The decision comes after recent major London listings by carmaker Aston Martin and peer-to-peer lender Funding Circle got off to rocky starts.

Read more: Litigation funder Vannin Capital lines up £1bn London float

Aston Martin listed its shares this month at 1,900p per share, which was at the lower range of the originally anticipated price range

They are now trading at 1,572p.

Funding Circle listed at 440p earlier this month and its shares are now trading at 397p.

Hextall said: “We are under no pressure to list the company in the near term and prefer to wait until market conditions are more suitable.”