KEY POINTS:
AMP Capital Investors said today it was pulling the sharemarket float of rest home operator Summerset due to turmoil in financial markets.
The announcement is a blow to stock exchange operator NZX which has only seen one equity IPO (initial public offering) this year.
Yesterday, brokers were told by the float's lead managers, ABN Amro and First NZ Capital, that a book build, or market testing of the indicative $1.70-$1.90 share pricing range, would be delayed 24 hours due to market uncertainty.
The indicative price would value Summerset at $340-380 million.
Yesterday, the NZX50 index fell another 1.5 per cent, while the Australian S&P200 index fell 3 per cent. The local market has plunged 7 per cent in just three weeks.
Managing director Murray Gribben said AMP Capital was happy to keep Summerset.
"We believe that its inherent value exceeds what the market would be prepared to pay in the current volatile conditions.
"We are not willing to accept a lower price for the asset and are under no pressure to sell."
He said the existing shareholders would retain ownership of the business and contribute capital towards Summerset's development plans.
Yesterday, Mr Gribben denied Summerset would pull the float until at least after the book build scheduled for tomorrow.
He said today that at some time, AMP Capital may reconsider conducting an IPO of Summerset.
- NZPA
