Biffa cuts IPO pricing in bid to keep float away from the scrapheap
Waste disposal company Biffa has relaunched its initial public offering (IPO) at a cut price after failing to find sufficient investor interest.
The company is now offering its shares at 180p, Morning Wire understands – down from an original price range of 220p-270p.
Read more: Float or sink? London's IPO market is giving off mixed signals
Biffa originally intended to raise £270m from the float but this target has now been reduced to £212m.
If Biffa finds sufficient interest at the 180p price, the company is likely to make an announcement on Monday and float on the London Stock Exchange later next week.
A source close to Biffa told Morning Wire yesterday that the company is determined to push through the deal despite struggling to find enough City interest. The company announced its intention to float in mid-September.
Read more: Mountain Warehouse takes a hike on IPO plans as half-year sales double
Fears have been raised over the health of London’s IPO market this week after Pure Gym and then TI Fluid Systems withdrew their plans to float.
Mountain Warehouse also this morning said it would not be pursuing an IPO.