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Cabot Credit Management scraps £1bn float amid market uncertainty

The debt collector will reassess the possibility of a float when market conditions improve

Cabot buys overdue credit card debt and other unsecured debt from lenders

Cabot Credit Management has scrapped its plans for a £1bn float, citing unfavourable conditions in the initial public offering (IPO) market.

Britain’s largest debt collector said it would reassess the possibility of a float when conditions improve.

“The high level of engagement and interest that we received from a wide array of investors was very encouraging, but the timing has been unfortunate with respect to IPO conditions,” said Ken Stannard, Cabot’s chief executive.

Several IPOs pulled

Cabot’s announcement marks one in a series of ditched IPOs in recent months.

TV transmitter firm Arqiva pulled out of its plans for a £6bn float at the beginning of November due to market uncertainty. It would have been the biggest IPO this year.

Russ Mould, investment director at AJ Bell, said “few tears should be shed by investors” over Cabot’s decision to abandon its IPO.

“First, the deal’s failure to fly means that fund managers are being selective when it comes to new deals and making active decisions to protect their clients’ cash,” he said. “Second, rampant float activity is normally a sign of an imminent market top.”

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