Australian investment management firm Firetrail Investments Pty. Ltd. has shelved the IPO of its listed investment company Firetrail Absolute Return Ltd., citing concerns over increased market volatility and a number of similar offerings this year, The Australian reported Oct. 16, citing a statement.
Patrick Hodgens, managing director of Firetrail Investments, said the offer may end up with too few large investors to provide liquidity for Firetrail Absolute Return. The company is also of the view that there would not be enough demand in the final days of the offer to "appropriately diversify" the company's shareholder base.
The decision to pull the IPO was made despite the company passing the minimum investment amount of A$73.5 million, Hodgens said.
On Sept. 24, Firetrail Absolute Return opened its IPO of 180,000,000 shares priced at A$2.10 each, with an aim to raise up to A$378 million. The offer was originally set to close Oct. 19, according to the company's IPO fact sheet.