New Look pulls planned stock market flotation

New Look has become the latest company to pull its planned stock market flotation, blaming turbulent markets. It is the second time in three years that the budget retailer, backed by private equity firms Permira and Apax, has abandoned plans for a float. It was hoping to raise £650m to cut its £1bn debt pile, but did not meet with much enthusiasm from fund managers. Carl McPhail, New Look's chief executive, said in a statement to the London Stock Exchange: "We have taken the difficult decision to postpone the initial public offering 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." While markets have expected a flurry of big stock market flotations this year, a number of companies have abruptly changed their minds in recent days. Merlin Entertaiments, the private-equity backed owner of Madame Tussauds, the London Eye and Legoland, yesterday put its £2bn flotation plans on ice and decided to reassess its chances of a successful sale. And hotel bookings business Travelport, which was destined to be the biggest UK market launch for two years, ditched its IPO plans on Wednesday night. In addition, retailer Matalan this week abandoned plans for an auction. New Look's move will put a question mark over IPOs for travel firm Amadeus and online grocer Ocado.