LONDON — The British used-car auctioneer and reseller BCA Marketplace said on Tuesday that it had called off its initial public offering in London, the latest European company to delay or withdraw its plans to go public amid uncertain markets. (International New York Times, by Chad Bray, accessed Oct.23)
As the capital market is unstable, BCA put its plan off to raise capital from the public. This reflects one important determinant of the company’s decision-making, risk assessment.
Although the IPO could have helped the firm to raise investment capital earlier if BCA had not delayed its plan. Uncertainty in the equity market would influence the value of BCA’s shares. If the volatile market was just in recession when BCA came in, the demand for its shares would be low, so the total value would be lower than that it could be when the market is growing.
LONDON reported that “About a half-dozen I.P.O.s in Europe were withdrawn or postponed this month as new listings performed poorly in volatile markets.” Many companies continued to trade lower than the initial offering prices. This fact also has delayed BCA’s IPO plan.
Reference list:
1. The British used-car auctioneer and reseller BCA Marketplace said on Tuesday that it had called off its initial public offering in London, the latest European company to delay or withdraw its plans to go public amid uncertain markets.
2. About a half-dozen I.P.O.s in Europe were withdrawn or postponed this month as new listings performed poorly in volatile markets.
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crop from http://www.british-car-auctions.co.uk/buy/Useful-information/BCA-Assured/