Bottled Water Producer Cancels IPO Due To Market Conditions But Consolidation Strategy Has Merit

Italian bottled water firm Sorgenti Emiliane Modena (SEM) has decided to cancel a proposed initial public offering (IPO) due to poor market conditions. The firm had previously announced plans to launch an IPO with a valuation of up to EUR43.42mn. However, the volatile nature of Italy's stock market, which has been heavily impacted by concerns about the country's high level of sovereign debts, has prompted the firm to withdraw the offer. Despite this setback we believe that SEM's plans for raising capital to drive consolidation within the sector have merit and would expect the firm to return to the market

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