Greenstone delays US$900m Australia IPO plan

June 11 2015 by InsuranceAsia News Staff

Life insurance distributor Greenstone has reportedly shelved its US$900m Australian IPO amid persistent doubts among fund managers about the company’s valuation according to reports.

Greenstone reportedly opted to pull the float on Tuesday night and postponed it indefinitely.

The company, which distributes insurance products and owns the Real Insurance business that sells life, pet and funeral cover, was planning a 16 June listing with a price range of US$2 to US$2.50 a share.

Reports said the decision to shelve the IPO was made as the owners of Greenstone were not willing to accept a cut into the company’s valuation.

Greenstone is the first float of size to be pulled in Australia so far this year.

Greenstone earlier announced it was seeking to sell 398.6 million shares, comprising of 261.8 million shares being sold by existing shareholders and between 131.9 million to 143 million new shares that the company would issue.

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