Market uncertainty sees firms pull IPOs

Parent company Blackstone's decision to shelve the 2bn initial public offering (IPO) emerged just hours before retail chain New Look made the same call and abandoned its stock market debut.

The decision marks the second time in two years that New Look's owners have scrapped an IPO for the retailer.

Blackstone has also put on ice plans to list US travel business Travelport after failing to win the support of investors.

It is thought recent heightened market volatility prompted the decision to postpone an IPO for Merlin – the world's second biggest visitor attraction business behind Walt Disney. The IPO cancellations come as a blow to the private equity and investment banking industry, with the floats seen paving the way for a new wave of listings and confirmation of a market recovery.

There has been severe volatility on markets in recent weeks, with the FTSE 100 Index slumping to lows not seen for three-and-a-half months and America's benchmark index closing below the 10,000 mark at one stage.

According to global deal tracking firm Dealogic, there have now been 16 IPOs withdrawn or postponed globally since the beginning of 2010.

The owner of discount retailer Matalan also put sale plans on hold after failing to attract interest from its would-be private equity buyers for a 1.5bn asking price.

Merlin's IPO had been mooted for some time, with reports last April signalling a desire to list. It is thought that the plans will be resurrected once conditions stabilise, although the proposals had been at an early stage.

Travelport's float was said to be much more advanced.

New Look, which is owned by buyout firms Permira and Apax Partners, stressed that yesterday's move will not see it bin flotation plans altogether.

Carl McPhail, chief executive of New Look, said: "We have taken the difficult decision to postpone the IPO as a result of the considerable volatility in the equity markets.

"We remain convinced of the strengths of the New Look business and its suitability as a public company. We will re-evaluate our options when market conditions improve."

New Look has 1,010 stores, including 601 in the UK, and rang up sales of more than 1.3bn in its most recent financial year.