PE-backed Varo shelves IPO

In a statement, the company said it had attracted investor interest but ultimately decided against an IPO "due to market conditions".

Varo announced its intention to float on Euronext Amsterdam in March and was expected to start the bookbuild last week. According to Unquote sister publication Mergermarket, Varo targeted a potential fair IPO valuation at around 7-8x EBITDA, which would have implied a $2.4-2.7bn market capitalisation.

Credit Suisse, Deutsche Bank and ING were mandated as global coordinators for the IPO, with Bank of America Merrill Lynch and Citi as bookrunners, and ABN Amro as financial adviser.

Carlyle teamed up with Vitol Group in 2013 to invest in Varo Energy, in a bid to create a midstream energy business in north-west Europe. The deal saw Carlyle and Vitol each taking a 50% stake in the company, and also provided an exit for previous Vitol investor AtlasInvest. Carlyle's investment was made via its CIEP fund, which is focused on oil and gas investments.

Varo is an integrated fuel supply company that produces and supplies fuel for cars, trucks, ships, aeroplanes and homes; LPG for cooking and the manufacturing of plastics; and bitumen for the construction of roads. It generated revenues of $13.4bn in 2017.

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