Synlait abandons IPO plan after disappointing response (Update 1)

South Island dairy farming and processing group Synlait has announced it has abandoned its plan for a NZ$150 million-plus stock market float later this year after a disappointing response from investors. (Updated with background and statement) Competition for investor cash has been intense in recent weeks as rural services and financing companies PGC and PGG Wrightson have gone into the market to raise rights issues cash. There have also been concerns about Synlait's debt and the willingness of its main shareholder Mitsui to go along with a float. Here is the statement below from Synlait.

Following a pre-marketing program to brokers and local and international institutional investors, Synlait Milk Limited (Synlait) advises that it has deferred its plans to IPO. Synlait received strong support for the IPO from local institutional investors and the Lead Manager but the overall level of support was insufficient to proceed at this time. Synlait remains committed to executing its plans and will continue to consider a future IPO and the alternative proposals centred on private capital placements that have been negotiated in parallel.