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Hollywood visual effects firm DNEG postpones London IPO

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By Reuters
Hollywood visual effects firm DNEG postpones London IPO
FILE PHOTO: Signage is seen outside the entrance of the London Stock Exchange in London, Britain. Aug 23, 2018. REUTERS/Peter Nicholls/File Photo   -   Copyright  Peter Nicholls(Reuters)

LONDON (Reuters) – Film special effects firm DNEG said on Friday it had postponed plans for an initial public offering (IPO) in London due to ongoing market uncertainty.

DNEG had received a strong level of interest from investors and would be assessing when to revive its IPO plans once market conditions improve, it said in a statement.

Ten European IPOs set to raise $2.3 billion (£1.8 billion) were cancelled in the year to mid-October, with investor sentiment battered by expectations of an economic slowdown due to Brexit and the U.S.-China trade war.

In London a number of listings have been pulled this year, including Kazakh finance firm in October and Swiss Re’s British life insurer ReAssure in July.

However, African mobile networks operator Helios Towers <HTWS.L> listed in London last month at a market capitalisation of £1.15 billion. Its stock market performance has been steady.

DNEG was intending to raise 110 million pounds from the IPO, at a price range implying a valuation of $654‐857 million (£511-670 million).

DNEG has offices in India and the United States. Its clients include 20th Century Fox, Disney and MGM.

(Reporting by Carolyn Cohn; Editing by Rachel Armstrong)