Fresh blow to London as Tungsten delays its float
TUNGSTEN, the British bid vehicle founded by Edmund and Danny Truell, yesterday announced a raincheck on its IPO.
Citing adverse market conditions, the financial services investment fund said it was postponing its flotation, set to raise £200m.
The announcement will come as a blow to the London Stock Exchange, which was expecting to list Tungsten shares in June.
The Truell brothers unveiled the IPO plans on 4 May, saying the newly incorporated company “intended to take advantage of the value opportunity within the financial services sector.”
The proceeds, to be raised from selling shares at £5, were expected to be used to fund acquisitions or to recapitalise and grow the company’s current assets.
The float delay will also be a letdown for UBS and Numis, the joint bookrunners on the deal.
Tungsten gave no indication yesterday as to whether it plans to return to the markets in the near future.
In a reflection of the tough market conditions, the disappointing news emerged just two weeks after O1 Properties, the Russian real estate investment firm, postponed its IPO.
The $425m flotation was also booked for the London Stock Exchange.
At the time, a spokesperson for O1 Properties said it would consider relaunching its flotation at another time, and its delay was not due to a lack of interest from prospective shareholders.
Worried eyes will now be turned in the direction of Megafon, another high-profile listing expected to land in London later this year.
Goldman Sachs and Morgan Stanley are advising the Russian telco, controlled by Alisher Usmanov, on its $4bn flotation.
Tungsten hit the headlines earlier this month when its founder Edmund Truell said the fund would consider making an offer for the insurance units of RBS and Lloyds, although it had yet to approach either bank.