Global Fashion Group (GFG), an online fashion retailer focused on Asia and Latin America, is postponing its initial public offering until July, which sources close to the matter said was due to low investor demand.
GFG said that the offer period for the IPO, which had been scheduled to end on Tuesday, would be extended to June 28. The offer period is when potential investors put in bids for the shares being sold in an IPO.
The company’s shares, which had been expected to start trading on Thursday in Frankfurt, will now start trading on July 2, GFG said.
Global Fashion Group delays its IPO. The company, owner of the The Iconic, Zalora, Dafiti and Lamoda platforms, has delayed its leap to the stock market due to the lack of demand from investors.
The company was scheduled to make the leap to the stock market next June 27, but it will not be until July 4 when the shares of Global Fashion Group begin trading on the Frankfurt stock exchange, according to Reuters.
One of the reasons why the group has delayed its IPO is the skepticism from investors as well as the negative performance in the stock market of several technology companies listed on the Nasdaq.
The company, owned by Rocket Internet, closed the exercise of 2018 with a growth of 5.5%, far from the 23.5% of the previous year. Sales stood at 1,555.9 million euros and the gross operating profit (ebitda) remained negative in the period, after recording losses of 49.8 million euros, almost fifty million euros less than in 2017.