ive float cancelled – at least for now

Printing and marketing company ive Group has cancelled its proposed float on the ASX that could have been the biggest stock play in the printing industry, according to a report in The Australian Financial Review.

"Given underlying market conditions, the shareholders of ive Group have decided to postpone their proposed IPO transaction," brokers Bell Potter and Evans & Partners told fund managers on Thursday afternoon. "Whilst there has been significant support for the IPO from a high quality group of investors right through the marketing period, the current short term volatility in the equity markets has impacted transaction momentum through the course of the past few days."

The decision comes days after insurance company Greenstone pulled out of its $900 million raising, also blaming unfavourable market conditions.

Strategic corporate acquisitions over the past couple of years in marketing communications and mailing have helped grow the former Blue Star Group – now rebranded as ive Group – into a corporate behemoth valued at between $261 million and $290.

ive Group chairman Geoff Selig and other senior executives had met with fund managers in Sydney ahead of the  proposed float. The prospective investors were told that the company is forecasting revenue of $355.7 million and net profit of $19 million in fiscal year 2016.

ive is owned by Wolseley Private Equity and the Selig family.