Mota-Engil suspends African IPO

Mota-Engil has suspended the initial public offering (IPO) of shares in its subsidiary Mota-Engil Africa. It said the decision had been taken, “Due to the recent significant deterioration in market conditions.”

In June the company announced plans to float at least 25% of its € 1 billion (US$ 1.35 billion) per year African construction business on the London Stock Exchange. The floatation could have netted more than UK£ 405 million (US$ 700 million) for the parent company had all the shares been subscribed at the top of the offer price.

However, stock markets have been lower across Europe this week following concerns about Portuguese bank, Banco Espírito Santo. The broad downturn in stock prices threatened the offer price for Mota-Engil Africa shares.