The board of BSP, Papua New Guinea's biggest bank, has shelved an ASX listing in the near-term.
In what is another blow to the local market for floats, BSP released a statement calling off preparations to list on the Australian bourse.
The bank is "continuing its consideration of initiatives to generate greater liquidity" in BSP shares, the statement said.
"BSP has not ruled out undertaking a secondary listing on the Australian Securities Exchange (Potential Listing), but is not currently of the view that there will be a significant public offer of shares in conjunction with the potential listing."
Sources told Street talk the ASX listing was shelved after BSP's shareholders and the board reflected on investor feedback but failed to reach an agreement on the structure of an Australian sell-down. The timing of the initial public offering was also getting too close to slated second quarter elections in PNG.
Shareholders including the PNG government were hoping to take some money off the table. BSP is already listed in PNG.
The company was pitched as PNG's biggest bank with total assets worth close to K20 billion ($8 billion) at December 31 and 23.1 per cent capital adequacy. The bank made a K$643.5 million ($262 million) profit in the 2016 calendar year, which was 21 per cent higher than the prior year.
Local fundies were mindful, however, of risks to BSP's prospects due to the upcoming election and a troubled PNG economy. Several also cited concerns about the PNG central bank's declining US dollar reserve balances.
Sponsor brokers on the float were UBS and Morgan Stanley.
It joins the likes of Alinta Energy and Accolade Wines in disappearing from the IPO pipeline. Alinta was sold in a $4 billion trade sale which requires Foreign Investment Review Board approval while Accolade - which is a large player in the UK - is waiting for a more favourable time to make its run at the ASX.
