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Fri 2 Nov 2012 10:48 AM

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Bahrain firm pulls unit's London listing plan

Arcapita withdraws IPO of its PointPark Properties unit; continues to assess all options

Bahrain firm pulls unit's London listing plan
Arcapita CEO Atif Abdulmalik

Bahrain-based Arcapita has withdrawn the planned London listing of its PointPark Properties (P3) unit, a company spokeswoman has told Reuters.

A banking source said there was a gap between the valuation the investment house wanted to achieve and the price investors were willing to pay for shares in the warehouse developer's initial public offering.

"We can confirm that the initial public offering has been withdrawn," a spokeswoman for Arcapita said.

"Arcapita has determined that there is greater value in not pursuing an IPO ... Arcapita will continue to assess all options to optimise value for Arcapita and its shareholders."

P3, which has 46 warehouse properties across Europe, had hoped to raise around £250m ($402.8m) through the London initial public offering, which was announced last month.

The offering was being run by Credit Suisse and Deutsche Bank.

After months of inactivity, the European IPO market has shown signs of life over the last month, with companies including German insurer Talanx, Britain's Direct Line and Telefonica Deutschland successfully completing market debuts in October.

The market is still far from robust however, with bankers saying the gap in price expectations between buyers and sellers remains wide, and investors still choosy over which companies they are willing to back.

In March, Arcapita became the first Gulf entity to file for Chapter 11 bankruptcy protection in the United States, after it was threatened with legal action if it did not repay a hedge fund in full.

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