The chief executive of Formula One has said that the motor racing group may delay its $3 billion stock market flotation until later this year because of volatile markets.
“It’s probably a better idea to get everything ready and then go ahead at two months’ notice when the markets have settled down,” Bernie Ecclestone told Bloomberg.
The company’s board is set to meet this weekend to decide on whether to proceed with the proposed listing in Singapore.
Formula One’s shareholders, led by CVC Capital Partners — which owns slightly more than 40 per cent of the company — plan to raise as much as $3 billion by selling existing stakes in the business.
However, world stock markets have recently been weak over concerns about the eurozone debt crisis. The appetite for initial public offerings has also been questioned after Facebook’s poor performance since listing.
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Such issues have already led the luxury jeweller Graff Diamonds to postpone its planned $1 billion stock market flotation in Hong Kong.
“There’s no rush, the markets aren’t good at the moment, it doesn’t inspire people,” Mr Ecclestone said, adding that he was “confident” the business would list later in the year.
A two-week roadshow, where the company tried to sell itself to potential shareholders, is said to have been well received and CVC intends to publish a prospectus on Tuesday with a view to listing later in the month.
CVC declined to comment on Mr Ecclestone’s comments.
Goldman Sachs, Morgan Stanley and UBS have been hired to lead the initial public offering. Leading business figures have been lined up to sit on the board of the company, including the Nestlé chairman Peter Brabeck-Letmathe, who would take up the same role at Formula One.
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The company makes money from selling broadcasting rights, striking advertising deals and charging cities for the opportunity to host races.