PE-backed Candyking abandons IPO after late profit warning — Reuters

Confectionary firm Candyking has abandoned its initial public offering after a profit warning this week, issued just one day before it had planned to list its shares in Stockholm.

The failed listing, a major setback for its largest owner, private equity firm Accent, comes just as the Swedish IPO market is heating up after years of drought. This week bath and toilet maker Sanitec made a strong market debut.

Candyking, which warned earlier this week profit would be hit by fires at two of its suppliers, said its long-term prospects were undimmed by the recent events.

“However, they have created uncertainty in the market, which at least in the short-term would burden Candyking’s standing as a listed company,” Accent Chairman Jan Ohlsson said in a statement.

Candyking had initially planned to list its shares on Dec. 12, but postponed the listing until Dec. 16 after the profit warning.

The company said in late November it would sell shares worth up to 830 million Swedish crowns ($126 million) in its initial public offering, making it one of the smaller IPOs currently in the pipeline in the Nordic region. ($1 = 6.5914 Swedish crowns).

(Reporting by Sven Nordenstam; editing by Niklas Pollard)