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)