The board chairperson at Valmet Automotive, Jarkko Sairanen, reminded YLE on Tuesday that it was only an announcement of intent.
He stated that the decision to put the plan on hold was made on the basis of a number of factors that were brought up during discussions with potential investors, including the geopolitical situation and its effects on the automotive industry, consumer prices, and the muted economic outlook.
He said that he believes that we should look into growth financing in another way and return to this issue of listing once the market environment is better, and that we shouldn't speculate on the possible financing options.
In October, Valmet Automotive said it plans to raise 140 million euro through the public offering to enable future investments in its battery business. At the time, Varma and Ilmarinen pledged to serve as anchor investors with a combined allotment of 70 million euros in shares.
Sairanen told the public broadcaster that the anchor investors were fully committed to the offering. That alone was deemed insufficient given the lukewarm sentiment in the capital and investment markets towards initial public offerings.
The investor's willingness to commit to growth stories is weaker than usual. He said that growth companies on the stock exchange have come down a lot as they've come down a lot. Our story is of course a growth story. He reaffirmed his confidence in the company's growth strategy and reaffirmed his belief that the electrification of road traffic will gain more momentum in the long term.