Third-party litigation funder Vannin Capital has postponed its plans to float on the London Stock Exchange this month, citing current market conditions.
Having only announced its intention to list last month, it has been influenced by the uncertain starts to listed life for carmaker Aston Martin and peer-to-peer lender Funding Circle, both of which high-profile stocks are trading at lower than their issue share price.
In a statement, Vannin chief executive Richard Hextall said: “Since announcing our intention to float, we have enjoyed an extremely positive reception from the investment community.
“The feedback we have received has confirmed what we already knew – that Vannin is an exciting business with top-tier people, an impressive track record and very attractive growth prospects.
“Although the investor roadshow generated strong indications of support from a high-quality group of institutions, management have concluded that the volatility experienced in the equity market in the last two weeks has led to conditions that are not conducive to an IPO, and that Vannin would be best served by postponing its proposed listing.”
Mr Hextall added that Vannin was in “an enviable position”.
He explained: “We have an extremely capable and well-respected team, significant capital available through our existing resources, forward visibility over a substantial pipeline of growth, and a leading position in a rapidly growing market.
“We are under no pressure to list the company in the near term and prefer to wait until market conditions are more suitable.”
The plan announced last month was for the existing shareholders are to make 25% of its stock available in a bid to raise £70m.
As of 30 June 2018, the group had £103m in live commitments, of which 91% was dedicated to single cases.
The proceeds of the float were to be used to repay in full a £27m shareholder loan by a company owned by Isle of Man-based Dan Craddock, the entrepreneur whose private office has largely funded Vannin until now.
Existing shareholders and certain members of the group’s senior management would also see “a partial realisation of their investment”.
The rest was to be used to expand into Singapore and Hong Kong, followed by additional offices in US legal hubs, broaden Vannin’s capabilities in commercial arbitration and investment treaty work, and increase its headcount generally.