(Reuters) -Industrial products provider Rubix Group on Tuesday scrapped plans for its initial public offering in London, citing difficult market conditions.
The company, owned by private equity firm Advent, said it had received strong backing for its business model and strategy from institutional investors but added that it was not in its best interests to proceed with the listing.
"It's a reflection of the IPO market at the moment, and the deterioration of conditions," said a source familiar with the transaction. "There have been a number of cancellations recently and the window seems to be closing. The Rubix strategy was well received, but the decision was made not to go ahead at this time."
Investor appetite for new stock listings has soured in recent months due to inflation fears and concerns over a property crisis in China, slowing what has been a record year for Europe's IPOs.
Many recently listed companies are trading in the red, with the FTSE Renaissance IPO index for the Europe, Middle East and Africa region down 11% this year so far.
Rubix, which sells industrial maintenance, repair and overhaul products across Europe, joins France's Icade Sante and Switzerland's Chronext in postponing their listings under difficult market conditions.
The company had declared its intention to go public last month, with plans to sell 850 million euros ($984 million) in new shares and potentially some existing stock.
($1 = 0.8636 euros)
(Reporting by Priyanshi Mandhan in Bengaluru and Abhinav Ramnarayan in London; Editing by Aditya Soni and Steve Orlofsky)