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German medical technology company Brainlab has postponed its planned stock market listing just two days before its scheduled debut, marking the latest setback for Europe’s struggling IPO market.
Bookrunners had already signalled on Monday that the company’s initial public offering would price at the bottom of the indicated €80 to €100 range, which would have valued the company at €1.7bn.
While the order book was said to be multiple times oversubscribed at that level, bankers had hoped Brainlab’s focus on artificial intelligence and surgical robotics — in an expanding healthcare sector — would help the deal stand out in an otherwise risk-averse environment.
However, a person familiar with the decision said the company’s shareholders were dissatisfied with the composition of investors in the order book. “The quality in the book appeared not very strong for a market debut,” the person said.
The decision comes just a week after car parts retailer Autodoc postponed its flotation, with bankers citing weak investor demand and geopolitical uncertainty. Earlier this year, drugmaker Stada also postponed its IPO plans amid market volatility.
So far this year there have been just two IPOs on Frankfurt’s stock market: €500mn electronics company Pfisterer and €1.2bn software company Innoscripta.
