Argentine steakhouse chain Gaucho Grill has abandoned its planned initial public offering (IPO), it emerged today.

In October, the 11-strong chain appointed brokers Collins Stewart and Altium Securities to push ahead with a flotation that would have valued the company at around £110m in a bid to raise up to £50m.

It was hoping that its strong returns on capital and the potential to add another 50 units in the UK at the rate of three a year would attract institutional support.

However, it is thought “highly volatile stockmarket conditions” have caused the group to abort the IPO.

A source told the Daily Telegraph: “Current trading continues to exceed expectations, but many fund managers are just very unsure about life at the moment.”

The move comes less than a month after private equity-backed noodle chain Wagamama ditched a planned IPO in favour of a private sale.

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By Daniel Thomas

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