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Candyking Abandons IPO Plans

After issuing a profit warning early last week, Swedish confectionary company Candyking halted its plans for an initial public offering, just one day before it was due to list its shares on the Stockholm exchange.

Candyking, owned by private-equity firms Accent and EQT, had warned in the lead up to the IPO that profit would be hit by fires at two of its suppliers. 

According to Swedish media outlets, two of Candyking's subcontractors, a factory in Skövde, Sweden, and another in the Netherlands, have experienced damaging fires.

The fires are expected to affect their Q4 earnings negatively to the tune of SEK 3.5 million.

"They have created uncertainty in the market, which at least in the short-term would burden Candyking's standing as a listed company," Accent Chairman Jan Ohlsson said in a statement.

Candyking, had initially planned to list its shares on 12 December, but postponed the listing until 16 December after the profit warning.

Now it is uncertain when such a move might be made.

The company said in November that it would sell shares worth up to 830 million Swedish crowns (€93 million) in the planned listing.

© 2013 - European Supermarket Magazine by Enda Dowling

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