German turbine manufacturer Senvion has cancelled plans for an initial public offering due to lack of demand from investors.
The Hamburg company said today that it was scrapping a private share placement which was to have taken place on Friday.
A spokesman told reNEWS that demand from institutional investors was too low. He said a private placement conforming to the initial IPO plans would not take place “for the foreseeable future”.
“Against the background of recent market volatility, Senvion S.A. and its shareholders Centerbridge and Arpwood have decided not to pursue a private placement and listing of shares on the terms previously communicated,” a company statement said.
Senvion last month announced the IPO to the Frankfurt Stock Exchange which it said would fund its expansion into new markets in South America and other regions.
A price range of €20 to €23.50 was planned with 46% of its share capital up for grabs among a select group of institutional investors.
Senvion planned to offer up to 29.9m shares from the holdings of the existing shareholders, including potential over-allotments of 3.9m shares.
Image: Senvion
