FRANKFURT, Nov 29 (Reuters) - German battery maker Varta has cancelled its planned 150 million euro ($159 million) initial public offering (IPO), citing an unfavourable market environment.
“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 systems.
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)