Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

New Look board meets as doubts rise over IPO

Fashion retailer New Look’s board will decide today whether to proceed with an IPO as fears rise that a flotation may be impossible.

In the last few days two floats have been abandoned and investors have made it clear they harbour grave doubts about buying into private equity-backed companies coming to market.

New Look, which is scheduled to publish its prospectus on Monday, hopes to raise £650m through its IPO to clear debt. However, it is understood that potential investors have given the retailer a cool reception. Some worry that New Look has limited opportunities to grow further in the UK and that its international expansion story is unproven.

New Look’s board meets following private equity firm Blackstone’s decision to put its proposed IPO of Merlin Entertainments Group on hold and the pulling of the Travelport flotation.

City investors have expressed scepticism about private equity-backed firms following disappointments such as Debenhams’ flotation. Andy Brough, manager of Schroders FTSE 250 fund, told The Times: “Personally, I just wouldn’t buy anything off private equity – they’ve had their chance.

“What does private equity do? They arbitrage the ignorance of fund managers. Well, we’ve kind of woken up.”

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.