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TI Fluid Systems postpones London IPO plans blaming market conditions
October 13, 2016 / 6:46 AM / a year ago

TI Fluid Systems postpones London IPO plans blaming market conditions

Oct 13 (Reuters) - Auto parts maker TI Fluid Systems (IPO-TIFU.L) said on Thursday it had decided not to proceed with its initial public offering (IPO) in London at the current time, citing market conditions.

The company, based in Oxford, England but incorporated in the United States, said last month that it expected to raise about 600 million euros ($672 million) by listing in London.

It already delayed the IPO after Britain’s vote to leave the European Union in June, which triggered volatility in financial markets.

Two other companies in Europe - UK gym operator Pure Gym and German real estate company OfficeFirst - also cancelled IPO plans on Tuesday due to unfavourable conditions. They join a growing number of firms to cancel listings this year amid disappointing debuts for many that did brave choppy markets.

Bookbuilding for UK waste management group Biffa’s London IPO closed on Wednesday without a covered message, suggesting that float could also be cancelled.

London’s blue chip stock index actually hit a record high on Tuesday, as a weak pound will boost earnings of many international companies, but there are concerns about volatility in the UK currency which has tumbled to its lowest in three decades since the Brexit vote.

TI, which reported revenue of 3.1 billion euros for 2015, has said it expects to have a free float of at least 25 percent after the IPO. ($1 = 0.8928 euros) (Reporting by Noor Zainab Hussain in Bengaluru; Editing by Susan Fenton)

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