In the last few days it was announced that two planned IPOs in Central and Southeast Europe will be postponed, reflecting broader challenges in market conditions. 

AirBaltic has delayed its anticipated IPO to the first half of 2025 or beyond, following advice from advisers to wait for more favourable market conditions in the European aviation sector. Initially slated for late 2024, the Latvian airline will now consider its IPO only when the outlook for European airlines improves, CEO Martin Gauss told Reuters, as reported on December 2.

Just days earlier, Croatia’s largest food retailer by store count, Studenac Group, cancelled its IPO in both Zagreb and Warsaw, which had been intended to raise €80mn. Despite strong investor interest in the company’s expansion plans, Studenac cited unfavourable market conditions as the reason for postponing the listing. 

“During our numerous meetings and discussions with Croatian, Polish, and international investors, they have shown genuine interest in Studenac's business model, appreciation for its dynamic growth and support for our expansion plans,” said Michal Senczuk, CEO of Studenac, in a statement emailed to bne IntelliNews. 

“However, due to the challenging conditions in the capital markets, we – together with our majority shareholder – have decided not to proceed with the IPO of the company’s shares.”

airBaltic had previously indicated it might proceed with an IPO in late 2024. However, according to Reuters, the airline is facing financial strain as numerous flights are grounded due to ongoing inspections of Pratt & Whitney engines, which could continue for up to two more years. Although compensation is being provided, it does not fully cover lost revenue. 

More broadly, challenges such as supply chain delays, labour shortages and airspace restrictions continue to weigh heavily on European airlines’ valuations, complicating IPO plans.

Studenac, meanwhile, had planned to list its shares on the Warsaw and Zagreb stock exchanges to support its rapid expansion. This included opening new stores, acquiring competitors in Croatia and Slovenia and reducing financial leverage.

Despite shelving the IPO, Senczuk expressed optimism. “We remain confident in our strategy and development direction, fully committed to continuing on this path without compromise,” he said, reiterating the company’s focus on organic growth and market consolidation.

Looking ahead, Senczuk added: “It is possible that, in the future, when market conditions are more favourable, we will revisit plans for an initial public offering.”

A number of Russian companies preparing for 2024 IPOs have postponed their plans indefinitely, Vedomosti reported. IPO activity, which had surged in recent years as smaller firms sought investment amid high bank loan rates, has slowed due to record-high interest rates reducing investor liquidity.

Potential issuers, including Rostelecom subsidiary RTK-DC and trading platform Kifa, have shelved their IPO plans, with analysts estimating dozens of companies delaying listings. 

In 2023, eight IPOs took place, followed by 15 in 2024 so far, primarily on the Moscow Exchange. However, market activity paused mid-year, only resuming in autumn with Arenadata, Ozon Pharmaceuticals and Lambumise.

High interest rates have also lowered available funds for retail investors and reduced overall market valuations, making companies reluctant to sell stakes too cheaply.

This is part of a broader global situation, with IPO activity remaining subdued as issuers hesitate to proceed with listings. 

There have been some success stories, notably Polish retailer Żabka Polska in the Central Europe region. Żabka recently raised €1.5bn on the Warsaw Stock Exchange.

However, in October, Spain-based Europastry has postponed its IPO plans for the second time this year. Initially set for October 10, the listing was delayed after book-building began on September 27. Europastry previously paused its June IPO plans in July, citing market volatility. The company stated it remains committed to monitoring conditions, with the IPO still a strategic goal.

Abu Dhabi’s ADQ had planned to list Etihad Airways on the local exchange. However, sources told Reuters the listing was initially considered for 2024 but was delayed to showcase strong financial results and navigate regional geopolitical challenges impacting on timing. A listing is now expected in 2025, in what would be the Gulf Cooperation Council’s (GCC’s) first major airline privatisation.

In the US, delays were announced to IPOs by companies including California-based AI firm Cerebras Systems (due to a CFIUS review of a $335mn investment from UAE-based G42) and Peak Resources LP, an oil and gas limited partnership. 

Chinese self-driving tech firm WeRide has also postponed its US IPO, citing delays in completing necessary documents. The company had aimed to raise $440mn. Known for robotaxis and autonomous vehicles, WeRide was last valued at $5.11bn, with $1.39bn raised to date.

However, while Kioxia Holdings delayed plans for an October IPO, the Bain Capital-backed chipmaker has now set a provisional price range for its IPO, at 1,390 to 1,520 yen ($9.22 to $10.09) per share, according to Reuters sources.