Petr Kellner’s Home Credit is weighing postponing its IPO on the Hong Kong stock exchange to sometime next year.
Home Credit began probing demand for its shares in September, targeting a market capitalization of up to €10 billion. Potential investors think a more realistic valuation is in the range of 5-7.5 billion euros, Bloomberg reports.
Continued protests on the streets of Hong Kong are damaging market sentiment and have deterred some Chinese investors. Fund managers are also concerned about the slowdown of the companies growth in some markets, including China, India, and Russia. Based on these circumstances, management is thinking about waiting for next year, when it could again reach its valuation targets.
Home Credit is a part of Kellner’s PPF Group, which this year reported a year-on-year increase in net profit of 160 percent to CZK 14.6 billion (573 million euros). In the same period last year, the company earned 5.6 billion crowns (220 million euros). The Group’s total assets increased by five percent this year to CZK 1.2 trillion (EUR 47.3 billion).