FRANKFURT Nov 29 German battery maker Varta
has cancelled its planned 150 million euro ($159
million) initial public offering (IPO), citing an unfavourable
"Varta AG and (its owner) Montana Tech Components AG will
continue to examine options for financing growth and continue to
monitor the market environment with regard to a possible IPO in
the future," the company said in a statement on Tuesday.
Varta had planned to use the proceeds from the IPO, planned
Dec. 2, on a new assembly plant for small batteries used in
portable devices and to buy rival makers of energy storage
Germany's volatility index stood at 20.5 on Tuesday.
Equity capital markets bankers generally say that any reading
above 25 makes an IPO difficult, albeit some transactions have
been done even at levels of up to 30.
($1 = 0.9421 euros)
(Reporting by Arno Schuetze)