Medical technology company Brainlab postponed its initial public offering in Frankfurt on Tuesday after some investors withdrew their orders, according to people familiar with the matter, the latest deal to be shelved as Europe’s market for new listings remains subdued.
An IPO at a later time for the Munich-based firm remains under consideration, according to a statement, which did not give a reason for the postponement. The deal had been expected to price at the low end of its marketed range, with enough investor demand to cover the offering multiple times at that level, according to terms of the offering seen earlier by Bloomberg.
Some investors pulled orders on Monday night over concerns that the stock would fall after it started trading, the people said, asking not to be identified as the information isn’t public. Representatives for Deutsche Bank AG and Berenberg, who were leading the deal, declined to comment. A spokesperson for Brainlab didn’t immediately respond to a request for comment.
The postponement comes just a week after German car parts retailer Autodoc SE also delayed its Frankfurt offering, and as Europe faced its slowest first half for IPO volume in more than a decade. Autodoc and its shareholders were unsure the stock would perform well after the listing, Bloomberg reported.
“The problem this year is that IPOs are coming too late in the window and investors don’t want to take on risk before the summer holidays,” said Michael Gierse, an investment manager at Germany’s Union Investment. “The end of the tariff pause in early July is another risk that could also have played a part this year.”
Brainlab and its shareholders were set to raise €320 million ($378 million) from the IPO, as the deal was expected to price at €80 per share, according to the terms. The company and its backers had offered shares to investors in a range of €80 to €100 apiece.
Founded in 1989, Brainlab first attempted an IPO in 2001, but stood down after the dot-com bubble burst.
Bankers running the deal had been slated to stop taking orders at 1 p.m. UK time, an hour before the delay was announced. The stock had been expected to start trading in Frankfurt on Thursday.
Written by: Swetha Gopinath, Arno Schuetze, and Pablo Mayo Cerqueiro — With assistance from David Morris @Bloomberg
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