Underground mining contractor Barminco has pulled the $600 million listing of the company.
Citing unfavourable and volatile market conditions, Barminco found no appetite for risk in its investment.
Backed by Gresham Private Equity, it sought between $2.02 and $2.22 per share and was valued at around ten times its forecast earnings for the coming financial year.
However vendors Goldman Sachs, Gresham Advisory Partners and Barminco founder Peter Bartlett were unwilling to sell at this price and chose to delay the listing.
“Barminco has been exploring the possibility of an IPO following the announcement of a strategic review of the company in February this year; however the company has elected to temporarily defer the IPO until more stable market conditions exist," the contractor stated.
Despite this volatility, Barminco CEO Neil Warburton said the contractor has received strong interest from potential investors.
Both drilling contractors Redpath and Ausdrill were been put forward as a possible suitors; Ausdrill in part due to its African joint venture with Barminco – African Mining Services, according to the Business Spectator.
The underground mining contractor will now focus on its existing projects and generating revenue, Warburton saying it has strong earnings growth forecast in the financial year to 30 June 2012.
“Barminco has an extremely strong order book with approximately 98 per cent of the company’s FY12 revenue forecast underpinned by current contracts and awarded projects,” he said in a company statement.
No future date was put forward for another float of the company.