British telephone directories firm Yell and DIY chain Focus Wickes have pulled plans to float their shares because of tumbling stock markets, piling pressure on the upcoming flotation of Irish drinks company C&C.
C&C said today it would press ahead with its plans for a €1.1 billion flotation in Dublin and London on July 10th.
Yell, which owns Britain's Yellow Pages and Business Pages, said it was scrapping Wednesday's planned £2 billion initial public offering after market turbulence sparked by a huge accounting scandal at US telecoms giant WorldCom.
The IPO would have been London's largest for almost a year.
After 18 months in the doldrums, Europe's IPO markets made a tentative recovery in recent weeks as bookmakers William Hill, energy services firm John Wood and quality control firm Intertek all got off to flying starts.
But news last week that US telecoms giant WorldCom had found a $4 billion hole in its accounts, and the ensuing slide in global stock markets, has thrown IPOs back on the sick-bed.
"We are now in a situation where the IPO market has come to a halt," KPMG's Mr Neil Austin said, adding companies were likely to wait until at least September or October before testing the IPO waters again.
Yell had hoped to raise up to £750 million from selling new shares to reduce debt and fund acquisitions.
Some analysts said Focus's decision to postpone its float did not have implications for other retail offerings. "Focus was a low quality stock in a crowded sector where there are many cheaper valuations, said Mr Nick Bubb, retail analyst at SG Securities.