BAHRAIN-BASED investment firm Arcapita has withdrawn a planned London listing of its PointPark Properties (P3) unit, highlighting valuation gaps still exist between sellers and investors despite renewed life in the IPO market.
Developer P3, which has 46 warehouse properties across Europe, had hoped to raise around £250m through the London IPO, which was announced last month.
The money raised from the listing would be used to acquire a property portfolio from Arcapita worth €760.1m (£609.6m), with the rest of the purchase funded through a 15 per cent equity stake being issued in the firm to Arcapita.
P3 will continue to manage the portfolio on behalf of its private equity owner while Arcapita decides its next move, which could range from reviving the IPO at a later date to a private sale, the banking source said.
“We can confirm that the initial public offering has been withdrawn," a spokeswoman for Arcapita said.
“Arcapita has determined that there is greater value in not pursuing an IPO ... Arcapita will continue to assess all options to optimise value for Arcapita and its shareholders.”
The offering was being run by Credit Suisse and Deutsche Bank.
City A.M. Reporter