Bain’s TI Fluid Scraps IPO Plans as Europe Listings Unravel

  • Buyout firm was seeking valuation for TI of 3 billion euros
  • European companies are struggling with weak IPO demand

TI Fluid Systems Ltd., the automotive company owned by Bain Capital, scrapped its initial public offering Thursday, the latest in a string of deferred European listings this week as nervous investors hesitate to buy into new shares.

The company decided not to proceed with the sale “at the current time due to market conditions,” TI Fluid said in a statement Thursday. Bain was seeking a valuation for TI of about 3 billion euros ($3.3 billion) including debt, people familiar with the matter said this week.

European companies are fighting weak demand for their share sales in a volatile market. U.K. waste-management business Biffa Plc is reviewing whether to proceed with its IPO after seeing tepid demand from investors, people familiar with the process said Wednesday. Pure Gym Group Plc and IVG Immobilien AG’s German office unit postponed IPOs Tuesday because of what the companies called challenging conditions.

Sentiment toward London’s IPO market has been hit by the devaluation in the pound since the U.K.’s vote to leave the European Union. IPO volumes leading up to the Brexit vote in June also were depressed as companies delayed deal plans until after the referendum.

The pound has dropped 18 percent versus the dollar since the vote and almost 6 percent this month on mounting concerns over Prime Minister Theresa May’s hard-line stance. The U.K.’s FTSE 100 Index, which touched an intraday record on Tuesday, lost 0.7 percent Wednesday as the pound rebounded after May said Parliament should be allowed a say on her Brexit plan.

European companies have raised about $28 billion so far this year from IPOs, according to data compiled by Bloomberg. That’s down from $52.6 billion in the same period last year.

Still, some large deals are going ahead in the market. ConvaTec Ltd., a medical technology company whose shareholders include Nordic Capital and Avista Capital Partners, began marketing its sale to investors today, aiming to raise at least $1.8 billion, according to the deal’s terms.

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