Bis Industries defers IPO plans

Bis Industries has deferred plans to launch a long-anticipated $510 million initial public offering due to what it describes as unfavourable market sentiment towards the Australian mining and resources sectors.

In a surprise move, Bis said today it would no longer go ahead with the IPO at this time despite receiving what it described as strong interest from potential backers during a global investor roadshow.

It is understood the company had planned to issue a prospectus with the Australian Securities and Investments Commission this week after months of speculation that a float could be imminent.

Bis chief executive Ian Lynass said the company had encountered broad market concerns about the resources sector.

“The feedback I have had from investors is that, whilst they acknowledge that Bis Industries is a high-quality business with a strong and attractive market position, the current negative sentiment around resources expenditure is impacting on all companies exposed to the sector,” he said.

“Given Bis Industries' focus on the production phase logistics, our operations continue to perform in line with expectations and we remain positive on our growth prospects.

"However, we recognise investor sentiment is not currently conducive to an IPO and therefore have elected to not proceed at this time."

Bis was originally a division of Brambles Industries but was purchased by private equity funds managed by US group Kohlberg Kravis Roberts & Co in 2006.

The company has offices across the country but its corporate headquarters remains in Perth.