Shortfall sees Prime pull out of IP0

The company, which invests in and manages healthcare properties, on Thursday cut the listing price and extended bookbuilding by 24 hours to entice investors.

"Ultimately, the amount raised did not warrant the level of dilution in management shares," chief executive Richard Laing said.

A recent equity markets boost has supported a resurgence in European public offerings, with a number of companies getting their IPOs away towards the upper end of their price guidance.

But bankers say investors remain discerning, particularly with regards to price and growth potential.

Evolution Securities and JP Morgan were joint bookrunners on the offering.

The UK commercial property market is expected to remain uncertain in the coming months, as concerns over the economy and government budget cuts rattle investors.

Prime said plans to make acquisitions and pay down debt that it had intended to use the funds for would not be affected by the cancellation of the listing. "We have the resources to pursue our business plan and look forward to continuing to grow and broaden the business," Mr Laing said.

At the fixed offer price of 190p per share, cut from the original 210-250p range, Prime would have raised 170m, a source said, 30m below target.

While investor demand was strong, management had not been able to achieve the value they had in mind, a source said.