October 23, 2024

Uncertainty and High Interest Rates Delay Tendam’s IPO Plans 💼📉

Spanish fashion retailer Tendam has delayed its initial public offering (IPO) due to uncertainty in the market and rising interest rates, according to CEO Jaume Miquel. Speaking at a business event on Monday, Miquel highlighted that “it will be difficult for medium-sized companies to go public unless interest rates drop and the U.S. presidential election outcome becomes clearer.”

Tendam, Spain’s third-largest fashion retailer and owner of brands like Cortefiel and Pedro del Hierro, initially postponed its IPO plans in June due to political instability affecting stock markets. The IPO was planned for launch before February 2025, but Miquel now says it’s “too complicated” for a retail company to go public until market uncertainties subside.

“The door’s neither closed nor open. The company’s ready to be listed,” he added, expecting sales growth between 6% and 8% in 2024. Private equity firms CVC Capital Partners and PAI Partners each own nearly half of Tendam.

Looking ahead, Tendam plans to expand its brands in Mexico and the Balkan region while eyeing the U.S. market. However, Miquel ruled out expansion into China, citing that European retailers face limited opportunities there. “China will continue to be an opportunity for luxury, but the rest of the market will be for Chinese brands,” he noted.

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