Marex Spectron cancels London float over "challenging IPO market"

(Alliance News) - Marex Spectron PLC on Wednesday said it has cancelled its London flotation ...

Alliance News 9 June, 2021 | 4:05PM
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(Alliance News) - Marex Spectron PLC on Wednesday said it has cancelled its London flotation because of challenging conditions in the IPO market, following reports that Elcogen Ltd also postponed its offering.

"Despite broad investor interest from high quality institutions in the Marex business and prospects, the company has decided not to proceed with the IPO at this time due to more challenging IPO market conditions," Marex said in a statement.

The London-based commodities broker had been due to go public on the main market in mid-June, saying it would determine a price after a bookbuilding process. The Times reported in May that Marex was targeting a valuation of GBP500 million to GBP700 million.

On Wednesday, the Evening Standard and Financial Times both reported that Elcogen delayed its planned IPO.

The fuel cell company based in Tallinn, Estonia, had expected to list on AIM in early June. It postponed the float "given current market conditions and sector volatility," the Standard cited the company as saying. It had targeted a valuation of up to GBP200 million but will now consider options including another fundraising round before an IPO.

But appetite among investors for new shares is starting to wane after an flurry of offerings at the start of the year, an unnamed fund manager told the Standard.

In the first quarter of 2021, 20 IPOs in London raised GBP5.6 billion, the strongest start to the year since 2007, according to the report.

By Ivan Edwards;

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