Apollo-backed German lender OLB pauses IPO amid banking crisis
(Bloomberg) — Private equity-backed German lender Oldenburgische Landesbank AG has paused work on a planned initial public offering that was expected in early May, people with knowledge of the matter said.
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The decision to halt the planned German listing came amid investor concerns over the health of the global banking system, the people said, asking not to be identified discussing confidential information.
Events following the collapse of Silicon Valley Bank and UBS Group AG’s deal for Credit Suisse Group AG have led to a risk-on rush that has made IPOs more difficult to pull off.
Nearly $2 billion has been raised through new listings on European exchanges so far this year, down nearly 50% from the same period last year, according to data compiled by Bloomberg. While a handful of issuers are plotting listing, most are sitting on the sidelines.
OLB, which is backed by private equity firm Apollo Global Management Inc., added a large roster of banks to its IPO line-up earlier this year, valuing the bank at more than €1 in anticipation of a first-half listing. was expected. billion ($1.1 billion).
One of the people said the lender is keen to pursue a listing and is ready to go ahead if market conditions improve, though the final decision will depend on its shareholders.
A representative for OLB declined to comment. A representative for Apollo did not immediately respond to requests for comment.
Read more: Apollo-backed lender OLB asked to add more banks to IPO roster
Based in Oldenburg, Germany, OLB was formed through a combination of several smaller German lenders, including some previously owned by Italian bank UniCredit SpA and German insurer Allianz SE. Other backers include the Teacher’s Retirement System of Texas and UK-based Grovepoint Investment Management LLP.
(Adds details on OLB plans in sixth paragraph.)
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