A Ferretti Riva yacht at the Singapore Yacht Show in 2015. Picture: REUTERS/EDGAR SU
A Ferretti Riva yacht at the Singapore Yacht Show in 2015. Picture: REUTERS/EDGAR SU

London — Ferretti, the Italian super-yacht maker, partially owned by the Ferrari family, scrapped its planned Milan listing on Thursday, citing weak market conditions, adding to a growing pile of recently pulled initial public offerings (IPOs) in Europe.

The cancellation came after the offer period for the listing was extended twice and the price range slashed. Despite interest from a number of investors, deteriorating financial markets led to an “incorrect valuation of the company”, Ferretti said in a statement. The company had cut the range for its offering to €2 to €2.50 per share, from an initial range of €2.50 to €3.70.

The lowered price range corresponded to a post-capital increase in market value of €581m to €727m. The company was originally targeting as much as €1.08bn in market value.

Ferretti is controlled by China’s SHIG–Weichai Group, which purchased 75% of the company in 2012. The heir of Enzo Ferrari, the founder of the iconic Italian supercar maker, bought about 13% of Ferretti in 2016.

Last week, Dutch messaging-service developer CM.com postponed its planned Amsterdam float, citing unfavourable market conditions. The troubles largely stem from a disconnect between sellers, who are often looking to offload shares at near top-of-the-cycle valuations, and investors, who say they’d rather wait and see than pay top dollar for new floats with no track record.

Among other listings that have been scuppered is that of German computer hardware firm Congatec, which, last Friday, said it would postpone its IPO plans. Interswitch, a Nigerian-based payments business, pushed back its listing plans until the first half of 2020; while Logistrial Real Estate put its IPO plans on hold after prospective investors pushed back against a structure that involved fee payments to an affiliated company, Bloomberg reported earlier this week. 

WeWork  scrapped plans in September for an IPO. 

Bloomberg