Gear4Music steps back from IPO

Fast-growing online business Gear4Music has stepped back from launching an initial public offering, The Yorkshire Post can reveal.

The company, which is backed by private equity firm Key Capital Partners, had raised the prospect of floatation after almost doubling its size in recent years.

It comes as challenger bank Aldermore shelved its listing plans, citing difficult market conditions and low investor confidence.

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Gear4Music founder Andrew Wass said the online-only musical equipment retailer will not be pursuing floatation at present.

He said: “I can confirm we are not considering an IPO in the short-term. Currently the situation in the market is not the best.”

Mr Wass said the company had been “assessing options” with regards to going public.

“We’re a growing business, we’re private-equity backed,” he added. “At some point there will be a transaction.”

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Several European firms have pulled listings in recent weeks due to tough market conditions, including British bank Aldermore, which is said to have missed its investment target.

The bank said: “Due to recent deterioration of global equity markets, Aldermore’s board and shareholders have elected not to proceed at this time with the IPO of Aldermore.”

The so-called challenger bank, founded in 2009 by former Barclays executive Philip Monks with backing from private equity firms AnaCap and Morgan Stanley Alternative Investment Partners, had planned to sell about £300m of shares by Thursday and list the following day with a market value of around £800m.

“The bank was being sold on growth at a time that we’re seeing a flight to safety. It was the wrong stock at the wrong time,” said a person close to the deal.

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The source added that books “didn’t get close” to being covered, and the valuation was regarded by some investors as too high.

The failure of Aldermore casts a shadow over the prospects of the bigger and more widely known Virgin Money IPO, another bank seeking to list this month. It will sell £150m of new shares and is expected to be valued at £1.5bn to £2bn.