Wilhelm & Co IPO cancelled
BRUSSELS: Belgian property group Wilhelm & Co has cancelled the flotation of a shopping centre, pouring cold water on hopes of a recovery in the market for initial public offerings (IPOs) in the country.
The company abandoned the up-to-196 million euros ($277.4 million) flotation of real estate certificates linked to Mediacite, a 45,313 square metre shopping centre in the Liege region in the east of Belgium, blaming market volatility.
It would have been the biggest IPO in Brussels since biotech firm Movetis floated at the end of 2009.
"Given the underlying level of market volatility and the worsening of the stock market climate, Mediacite Shopping SA considers that the conditions to ensure a clear success for the offering are not met," it said in a statement issued late on Friday.
More than 20 initial public offerings have been pulled in Europe in 2011 as investors demand big discounts to take a punt on new issues amid broader stock market volatility.
Last year chemical firm Taminco abandoned what was to have been Belgium's biggest IPO since 2007, blaming unfavourable market conditions.
Copyright Reuters, 2011
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