rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Sports » Formula One delays $3 bln Singapore IPO on weak markets

Formula One delays $3 bln Singapore IPO on weak markets

June 01, 2012 08:18 IST

Motor sport racing company Formula One has delayed its Singapore initial public offer worth up to $3 billion due to weak markets, with the sport's boss and part-owner, Bernie Ecclestone, saying the firm is waiting until the time is right.

Formula One has dropped plans to lodge its IPO prospectus with Singapore authorities next week, a source familiar with the matter confirmed on Friday, becoming the fifth major IPO to be pulled or delayed in Asia over the past week alone.

On Thursday, London luxury jeweller Graff Diamonds scrapped its planned $1 billion IPO as global markets tumbled on concerns over the euro zone crisis and a slowing Chinese economy.

Ecclestone, commercial head of the sport and also a minority owner of Formula One, signalled the delay in an interview with Reuters on Thursday, saying the owners were biding their time.

He stressed, however, that the IPO had not been pulled.

"We're going through all the normal motions ...," the 81-year-old billionaire said. "We are getting prepared so all these things are done and then whenever we want to go, we can go."

The MSCI's index for Asia ex-Japan has fallen about 11 percent in the past month, taking a heavy toll on the region's IPO pipeline. Investors were already wary of new offers following the botched Facebook IPO. The stock price of the biggest social media web site has fallen 22 percent in 10 trading sessions since its debut in the United States.

Goldman Sachs, Morgan Stanley and UBS have been hired to lead the IPO.

Source:
© Copyright 2014 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.