Bakking up: Tesco and Waitrose supplier Bakkavor sacks off London float

Food supplier Bakkavor has backed out of its plan to float on the London Stock Exchange, saying current market conditions are too volatile.

The IPO was set to take place this month and would have valued the company, which creates microwave meals and other products for the UK’s biggest supermarkets, at up to £2bn.

Read more: Tesco supplier Bakkavor readies itself for float valuing it at up to £2bn

“While the company received sufficient institutional demand to cover the offering, the board has taken the decision that proceeding with the transaction would not be in the best interests of the company, or its shareholders, given the current volatility in the IPO market,” Bakkavor said in a statement.

The company said it would continue to pursue its strategy within the fresh-prepared food sector. It claims to be the “clear market leader” in the industry, and said the board has a confident outlook for the future.

London’s IPO market was dealt another blow today as TV mast owner Arqiva scrapped its £6bn float, which would have been the largest IPO of the year.