Oil-rig contractor Shelf Drilling has said it will to pull its plan for a £300million float on the London Stock Exchange, citing insufficient interest to justify proceeding with the sale.
The news marks the latest in a run of failed IPOs including high-profile companies Fat Face and Wizz Air. It also reflects uncertainty in investor confidence in the oil and gas sector.
Investors are becoming increasingly picky as companies announce intentions to float in ever growing numbers. Recent disappointments Saga and Card Factory, whose shares are both trading below issue price, have also acted as warnings to those who sign the cheques.
Dubai-based Shelf Drilling was understood to have planned on repaying a portion of a £205million loan with the proceeds from the now-pulled sale.
The company is chaired by Sir Richard Olver, previous chairman of BAE systems and a former director of oil heavyweight BP.