LM Glasfiber pulls IPO

In what will be seen as a body-blow to the anticipated resurgence of the new issues market, the Doughty Hanson-backed firm has cancelled its Danish listing.

LM Glasfiber, the Danish wind turbine blade manufacturer, has shelved plans for its initial public offering in the Danish stock exchange. The firm, which was due to complete its listing today, said yesterday that the flotation had been pulled due to ‘adverse market conditions’.

The cancellation is a disappointment for Doughty Hanson, the UK-based private equity group that acquired the company in March 2001, which had hoped to sell up to half of its 95 per cent stake in the company. LM Glasfiber had hoped to raise E250m via the listing, giving it a market capitalisation in excess of E500m.

Dresdner Kleinwort Wasserstein acted as global co-ordinator and bookrunner, with Nordea Securities as joint lead manager. The price range had been set between DKr 70-82, although a definitive price for the listing was to have been announced yesterday prior to today’s listing. It was decided that a lowering of the offer price would have been unjustifiable.

The cancellation of the listing will put a question mark over other IPOs planned for this year. Attention will now turn to Alfa Laval, the Swedish engineering equipment manufacturer controlled by venture capital firm Industri Kapital, which is due to list on 15 May. If it goes ahead, the IPO will value the firm at around E800m.

Other listings in the calendar include HMV Media, Duke Street's Focus Wickes and Permira-controlled Homebase.

Nobody at Doughty Hanson or LM Glasfiber was available for comment.