Weak ASX performance and soft sentiment means we may not see Greenstone debut as a public company for some time. Concerns about expectations of multiples may mean Greenstone needs to have more runs on the board before it seeks to tap the IPO market in future.
Insurance distributor, Greenstone, has shelved its initial public offering. The news comes amid persistent doubts among fund managers about the company’s valuation of 15.5-19 times forward earnings.Greenstone ranked as one of the largest offerings of 2015 and the decision to delay its IPO will add further volatility to Australia’s jittery stock markets.It is understood the insurance resellers owners, Hollard Group and co-founder Gavin Donnelly, opted to indefinitely delay the listing rather than accept a cut to the company’s valuation.Concerns over Greenstone’s valuation and accounting structure have dogged the deal from the outset. Despite a recently completed offshore roadshow, joint lead managers, Macquarie and Goldman Sachs, and the company’s management were unable to drum up sufficient demand to offset weak appetite from local investors.Greenstone had hoped to raise between $809.7m and $984.2m at the end of the week.