The London-based REIT earlier this month unveiled plans to raise 300 million pounds ($401.43 million) on the LSE's specialist fund segment. On Thursday, the company told stock exchange officials that it is not accepting offers to buy shares and will return money received to relevant subscribers according to a matter outlined in its prospects.
"In light of the events in Ukraine over the last 24 hours, the decision has been taken to pause the active marketing of the company's initial public offering," Co-Living REIT said in a notice posted on the LSE's website.
Co-Living REIT said it will notify the market when it decides to resume its IPO. It had planned for shares to begin trading in March. The company invests in co-living assets — private apartments that are supplemented by shared facilities and amenities — in U.K. and Irish cities where it sees a shortage of quality, affordable residential units.
Russia launched an attack on Ukraine early Thursday, bombing several cities. Already volatile markets around the world mostly fell as the conflict in Eastern Europe escalated.
The FTSE 100, consisting of LSE's largest 100 companies based on market capitalization, fell 3.9% Thursday following news of explosions in the Ukrainian capital of Kyiv and other cities. U.S. stocks were mixed, with the Dow Jones down about 265 points in afternoon trading while the technology-heavy Nasdaq gained 224 points.
The U.S. IPO market is already off to a cold start in 2022, given a rocky macroeconomic climate beset by inflation fears and concerns that many stocks are overvalued.
No operating companies are scheduled to go public in the U.S. this week, according to IPO research firm Renaissance Capital, except a potential $16 million offering by British medical-grade cannabis firm Akanda Corp. Several U.S. blank-check companies, which are shells that raise money to acquire a private business, have priced IPOs.
Co-Living REIT is represented by London law firm Stephenson Harwood LLP and Proskauer Rose LLP on U.S. legal matters.
London law firm Travers Smith LLP is representing the IPO's underwriter, Stifel Nicolaus Europe Ltd.
Co-Living REIT has hired Gravis Capital Management Ltd. as its investment manager.
--Editing by Alyssa Miller.
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