Feb 5, 2020 - Economy & Business

Coronavirus outbreak threatens some IPOs

Illustration of microsome surrounded by question marks
Illustration: Aïda Amer/Axios

PT Softex, an Indonesian sanitary product maker backed by CVC Capital Partners, may postpone its local IPO because of coronavirus concerns, per Bloomberg. This comes just weeks after Atotech, a German chemicals group owned by The Carlyle Group, delayed its U.S. IPO for similar reasons.

Why it matters: The fear and supply chain challenges are real, as are the difficulties in setting up travel and meetings with prospective Chinese investors. PT Softex, which seeks to raise upwards of $400 million, also has the added challenge of a soft Jakarta stock market.

The bottom line: "Softex, which was set up in 1976, sells its products in more than 35 countries, including developing economies where clean feminine-hygiene products are often considered luxury," Bloomberg reports.

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