Roof tiler Marley abandons £500m floatation plans amid growing market concerns
The biggest producer of roof tiles in Britain has abandoned its £500m plans to float on the London Stock Exchange, blaming “market volatility” as investors fear a rise in UK interest rates.
Marley Group announced its change of plans this morning despite “considerable institutional investor interest”, according to the company. The news came less than three weeks after it originally announced its intention to float on the stock exchange.
It also follows on the heels of Eurowag’s debut on the stock exchange last week. The payments system company, which services truck fleets, saw its shares fall after it floated a day later than planned and its price drop to £1bn from an expected £1.7bn valuation.
The roofing specialist firm, which is owned by British private equity firm Inflexion, had been aiming for a valuation between £470m and £500m, according to The Times.
In an update to investors Marley Group said: “the Board and shareholders have decided that proceeding with an initial public offering in this period of market volatility is not in the best interests of the Group and its stakeholders.”
The ongoing energy crisis and continued global supply chain disruptions are just two issues adding to the volatile environment referenced by Marley.
The unfavourable market conditions have not gone unnoticed by other businesses. A real estate trust, Responsible Housing, also parked its plans, worth £250m, to list on the stock exchange.
The cautious approach by Marley raises concerns that the boom in floatations – with funds raised by companies floating on the London stock exchange in the first nine months of the year totalled £13.4bn, according to research published by EY last week – could be coming to an end.
There are still a number of companies eyeing up listing though too. After a year of preparation, electric vehicle (EV) charging firm Pod Point yesterday announced its intention to float on the London Stock Exchange by mid-November.
Mexican food chain Tortilla made its debut on the junior Aim stock market with a £70m flotation earlier this month while fast-food chain Burger King is reportedly preparing to float on the London Stock Exchange for around £600m.