Luxembourg-based glass and metal products firm Ardagh Group is delaying its previously planned initial public offering (IPO) for its wholly-owned subsidiary Oressa citing challenging IPO market conditions.
Announced in June this year to cut debt and fund further growth, the IPO could fetch around €2bn.
The preparations for the IPO of the metal can packaging business are virtually completed, sources reported citing Ardagh.
Commenting on the delay, Ardagh said: "current IPO market conditions in the US are challenging and, as a result, it does not believe that it would be wise to seek to access the equity markets at this point in time."
The company also said that it would oversee the situation and will launch the IPO as soon as market conditions are suitable.
Ardagh had previously planned to divest a minority stake by the end of this year. The sale would take place based on the market conditions.
Meanwhile, Ardagh posted 11% rise in revenues to €1.5bn for the quarter ended in September this year.
The company generated earnings of €277m, marking an increase of 15% when compared to the same period last year.
Its pre-tax profits increased to €73m, up from a loss of €2m in the same period in 2014.
Ardagh's metal can business has operations across 54 production units in 20 countries. It has a customer base of 1,300 and a staff headcount of 7,300.
