Grupo Financiero Mifel SA de CV decided to indefinitely postpone its planned initial public offering due to current market conditions, Reuters reported.

The company, which owns Banca Mifel SA Institución de Banca Múltiple Grupo Financiero Mifel, was looking to raise up to 8.45 billion Mexican pesos in the IPO by offering 167 million series O shares at between 35 pesos and 40 pesos each, plus a possible overallotment option. The book was scheduled to close Oct. 17 followed by the float on Oct. 18.

JP Morgan, which was one of the coordinators for the offering, and a senior Mifel executive both declined to comment on the development, according to the newswire.

Sources previously told Reuters that the bank was unable to secure desired terms for the offering, adding that demand from Mexican pension funds was also low.

Grupo Mifel, which currently has 72 branches across Mexico, has been considering going public since 2014. It cited adverse market conditions when it previously shelved the plan.

The Mifel IPO is the second canceled listing in Mexico this week. Local retailer and lender Grupo Coppel SA de CV reportedly pulled out of a more than $1 billion IPO earlier in the week after its family owners opted not to go public.

S&P Global Ratings recently placed Banca Mifel on CreditWatch positive, saying that the IPO could help improve the bank's risk-adjusted capital ratio to above 10% by the end of 2018. Without the listing, the rating agency expects the bank to end the year with a RAC ratio of about 8%.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings.

As of Oct. 17, US$1 was equivalent to 18.79 Mexican pesos.