Coronavirus outbreak threatens some IPOs
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.