Spanish property firm Tremon has scrapped its planned initial public offering (IPO) because investors are not willing to pay the offer price. The company postponed the IPO on two previous occasions in the hope of achieving better conditions. But Tremon has now decided that the listing cannot go ahead in the current climate as 'the discount requested by investors doesn’t correspond to the company's true value'.
Spanish property firm Tremon has scrapped its planned initial public offering (IPO) because investors are not willing to pay the offer price. The company postponed the IPO on two previous occasions in the hope of achieving better conditions. But Tremon has now decided that the listing cannot go ahead in the current climate as 'the discount requested by investors doesn’t correspond to the company's true value'.
The company also claimed that 'the market is currently unable to appreciate different business models and quality of assets in different companies in the sector'.
Tremon had set a maximum price of EUR 7 for the 25% share capital to be listed. The move would have given Tremon a market capitalisation of EUR 1.2 bn. In June, the company had first postponed its planned IPO until September, citing a 'crisis of confidence' in the Spanish property market. The company said it needed more time to explain its plans to investors.
Cypriot-registered real estate development and management company Teorema Holding postponed its IPO plans last week, blaming 'current market conditions'. Teorema Holding is the parent company of the Teorema Group, which owns over 80,000 m2 of commercial space in St. Petersburg in addition to 9,600 m2 of warehouse space. Future development plans include 3.48 million m2 of commercial and residential space in five large sites in St. Petersburg.