Legal Business Blogs

Vannin Capital shelves IPO as volatile market knocks Aston Martin and Funding Circle listings

High-profile litigation funder Vannin Capital has shelved its planned initial public offering (IPO) only one month after announcing its intention to float, blaming volatile equity markets.

The move is a blow for the fast-growing litigation funder, which in September hired Allen & Overy veteran David Morley (pictured) as chair to spearhead the October listing, which would have seen £70m of new shares issued and some shares held by existing shareholders sold.

Vannin chief executive Richard Hextall said in a statement: ‘Although the investor roadshow generated strong indications of support from a high-quality group of institutions, management have concluded that the volatility experienced in the equity market in the last two weeks has led to conditions that are not conducive to an IPO, and that Vannin would be best served by postponing its proposed listing.’

The decision puts the kibosh on Vannin’s plans to use part of the proceeds to drive growth in its core areas and expand into Singapore, Hong Kong and the US. It also said it would invest in commercial arbitration and investment treaty with additional hires, and increase its headcount with targeted hires.

The IPO of luxury car maker Aston Martin, which was reportedly set to value the business at £5bn, and the £300m listing of small business lender Funding Circle have failed to make a splash.

In the week since listing, Aston Martin’s shares have fallen from £19 to £15.57 on Wednesday. Similarly, Funding Circle shares have dipped from 440p at listing to 391p per share.

Hextall added: ‘We have an extremely capable and well-respected team, significant capital available through our existing resources, forward visibility over a substantial pipeline of growth, and a leading position in a rapidly growing market.  We are under no pressure to list the company in the near term and prefer to wait until market conditions are more suitable.’