May 26 Multi-website online retailer The Hut will not go ahead with a previously announced listing on the London Stock Exchange amid concerns about unsustainable technology valuations and share volatility, The Financial Times reported late on Monday.
The British newspaper reported The Hut Chief Executive Matthew Moulding as saying even if the company had floated at a sensible valuation, there was a risk the share price would be pushed to unsustainable levels before correcting. (link.reuters.com/vyc69v)
Moulding, who has a 17 percent stake in The Hut, said the company did not need to raise funds, adding that it had returned 13 million pounds to investors.
London has been a particular hot spot for capital, as firms tap yield-hungry investors, and private equity groups cash in on strong equity markets to exit investments made before the 2008-2009 financial crisis.
British retailers Poundland, Boohoo and Patisserie Valerie have all floated in recent weeks.
However, lukewarm demand for shares in retailers like Card Factory Plc is the latest sign interest in European company flotations may be cooling somewhat after a red-hot start to the year.
British clothing chain Fat Face (IPO-FFFL.L) also called off a planned 110-million-pound ($186 million) London stock market listing last week, citing market conditions as the reason.
The Hut could not be immediately reached for comment. (Reporting by Aashika Jain in Bangalore; Editing by Paul Simao)