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Vannin Capital scraps IPO plans after recent flops from Aston Martin and Funding Circle

Richard Hextall, the group’s chief executive, blamed “volatility experienced in the equity market” as the reason behind the abandonment of the IPO

Burning IPO on post-it note
Reports earlier in the week said that Vannin had reduced its proposed valuation to £600mln-£700mln from £1bn

Litigation financing firm Vannin Capital has scrapped its plans to float on the London Stock Exchange after announcing its intention to list only a month ago.

The company provides financing for law firms, companies, and individuals to fight legal disputes in return for a share of any settlement or damages payout that is reached.

READ: Aston Martin flop leads to reported IPO devaluation for law firm Vannin Capital

Richard Hextall, the group’s chief executive, blamed “volatility experienced in the equity market” as the reason behind the abandonment of its initial public offering (IPO) plans.

The news follows reports earlier in the week that Vannin had reduced its proposed float valuation to between £600mln-£700mln from a previous estimate of £1bn, a move that was speculated to be in response to poor performances from two recent IPOs, luxury car maker Aston Martin Lagonda Global Holdings PLC (LON:AML) and peer-to-peer lender Funding Circle Holdings PLC (LON:FCH).

Both companies conducted IPOs earlier in the month and both fell at the start line with shares tumbling below the offer price.

In late-morning trading Thursday, Aston Martin shares were trading at around 1,500p, 21% lower than its 1,900p offer price, while Funding Circle was trading 13% below its 440p float price at 381.3p.

Quick facts: Aston Martin Lagonda Global Holdings PLC

Price: 450.3 GBX

LSE:AML
Market: LSE
Market Cap: £1.03 billion
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