Philippine meat supplier North Star defers IPO on inflation, market concerns

A trader takes orders on a telephone at the Philippine Stock Exchange. Source: Reuters

Philippine firm North Star Meat Merchants Inc is deferring up to 4.5 billion pesos ($85 million) initial public offering because of increased market volatility and concerns about inflation, the firm said on Tuesday.

The decision is the latest among a series of uncertainty-driven listing postponements in Asia, as financial markets reel from elevated inflation and the Ukraine-Russia crisis.

North Star, one of the Philippines’ largest meat retailers and suppliers, was supposed to offer its shares next week and list on June 24. Two sources with knowledge of the matter had earlier confirmed to Reuters the postponement.

The company, in a notice to the exchange on Tuesday, said the decision was “due to increased market volatility amidst inflationary concerns”.

One of the sources, who was not authorised to speak to the media, told Reuters that North Star would not incur penalties as the offer period had yet to start.

Its IPO would have been the country’s eighth this year.

In May, Vietnam’s Vingroup conglomerate said an IPO for its auto unit, VinFast, may be delayed until next year due to market uncertainty. Malaysia’s Top Glove Corp delayed its plans to list in Hong Kong in March while Asian insurer FWD Group has postponed its $1 billion Hong Kong share sale.

Reuters

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief
Subscribe to Newsletter

This is your last free story for the month. Register to continue reading our content