Steinhoff International, which owns part of Mattress Firm in the US, says the latter withdrew its initial public offering (IPO) application on 9 January.

In January 2022 the speciality retailer applied for an IPO of its common stocks to the US Securities and Exchange Commission (SEC), in a bid to list it on the New York Stock Exchange.

In a Sens announcement on Wednesday, Steinhoff said the withdrawal came “in light of the ongoing volatility in the IPO market and following careful consideration with external advisors”.

The retailer filed a registration statement on Form S-1 with the SEC in September 2021 and publicly filed in January 2022. However, its financial information in the Form S-1 had not been updated since February 2022. 

Steinhoff said Mattress Firm “continues to actively explore all options and paths forward, including resuming the IPO process once the markets are favourable.”

Mattress Firm has over 2 300 retail stores throughout the US, which Steinhoff says gives it the largest national retail footprint among mattress speciality retailers in that country.

Insolvent 

Meanwhile, Steinhoff has been found to be technically insolvent. In mid-December it announced reaching an agreement with some of its largest creditors to extend its debt maturity. In the new proposal, creditors have 80% economic interest in Steinhoff, with shareholders retaining just 20%, housed in an unlisted entity.

The news saw the share plunge over 60% and remain around R0.50. The former Top 40 share – which fell from grace after a massive accounting scandal came to light in 2017 – is down over 99% from its all-time high of close to R100 in 2016.

Meanwhile the JSE has announced plans to fine former Steinhoff CEO Markus Jooste R15 million for violating listing rules and submitting false financial statements and to bar him from holding office in a listed company as a director or officer for 20 years.