Danwood suspends IPO

Prefabricated houses producer Danwood suspended its IPO after failing to “secure satisfactory terms” regarding the issue price. “The reason for the suspension of the offer is the price offered by institutional investors during book building, which according to the selling shareholder does not reflect firm's fundamental value and its growth potential,” Danwood said. Company’s sole shareholder investment fund Enterprise Investors planned to float up to 50 percent stake in the firm, with an option for selling additional 10 percent stake. The maximum share price in the prospectus was PLN 15 apiece, with the minimum price set at PLN 11.5 later cut to PLN 10.5. Danwood sells turnkey, prefabricated wooden houses. In 2017 it sold over 1,200 homes (22 percent y/y increase) and had PLN 840 million revenues (25 percent y/y increase). The German market accounts for some 90 percent of the total revenues, the company is also present in Austria, the UK, and Switzerland.