By Scott Murdoch
SYDNEY, Oct 17 (Reuters) - Australian mining services company Molycop has put on hold its planned A$1 billion ($635 million) initial public offering until 2024 due to the ongoing volatility in global financial markets, according to two people with direct knowledge of the matter.
The sources declined to be named as the information remained confidential.
Molycop and its private equity ownership group, American Industrial Partners (AIP) declined to comment.
The deal was slated to be one of the largest in Australia for 2023, and the biggest new share sale since GQG Partners raised A$1.18 billion in a 2021 listing.
Australia's capital markets are on track to record one of their poorest performances in recent years with IPOs having earned $509.9 million so far in 2023, down 10.5% on the same period in 2022, according to LSEG data.
The decision to put the Molycop deal on hold was made because of the latest bout of market volatility caused by higher inflation and the likelihood of elevated interest rates for longer than expected, the sources added.
A deal is likely to proceed in 2024, the sources said.
Pausing the Molycop deal comes soon after Virgin Australia's owners Bain Capital also decided to delay the airlines' planned 2023 float to raise A$1 billion, Reuters reported last week.
Molycop, which was sold out of the liquidated industrial business Arrium in 2016, is the world's largest manufacturer of steel balls to grind ore, among other mining consumable items.
The company held an initial roadshow with potential investors earlier this month and planned to open the IPO bookbuild in November, Reuters reported on Sept. 8. ($1 = 1.5748 Australian dollars) (Reporting by Scott Murdoch in Sydney; editing by Miral Fahmy)