Hg-backed MeinAuto Group, the company behind German car marketplace MeinAuto.de, has postponed its planned initial public offering due to adverse market conditions, the company said Tuesday.

In a short statement released today, the group said: “MeinAuto Group, together with Hg, has decided to postpone the contemplated IPO due to currently adverse market conditions for high growth companies. MeinAuto Group and Hg remain committed to listing on the Frankfurt Stock Exchange once market conditions stabilise.”

The company had planned to go public on May 12, setting a price range of €16-20 ($19-24 U.S.) per share, giving the company a market capitalization of €1.2 billion to €1.5 billion ($1.5-1.8 billion U.S.).

The group, set up by software and services investor Hg, operates one of Germany’s largest online portals for buying new cars, attracting around 26 million users a year. MeinAuto reported FY 2020 revenues of €212 million ($250 million U.S.).

The announcement comes as a surprise. The planned deal had been watched closely by investors and market analysts, following the IPO of used-car marketplace Auto1, which went public earlier this year at a valuation of around €9.5 billion.

Last week, MeinAuto Group CEO Rudolf Rizzolli said the company was “well on track” and had received positive feedback from investors. The planned IPO was widely seen as a vital step to build the company’s profile in Germany, where it ranks among the leading online platforms for digital new car sales.

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