British pubs group Punch Taverns has pulled plans to float on the London Stock Exchange, just hours before trading was due to start.
The group issued a statement late last night saying it would not proceed with the flotation "on the basis of the recent conditions in the equity markets".
The group had planned to price its shares at between 250p and 300p - valuing it between £620 million and £744 million. It also has debt of about £1.4 billion.
Shares were due to start conditional trading today and full trading next week.
Sentiment was hurt by the poor reception to HMV's flotation last week - HMV's shares started conditional trading on Friday at 192p and have slid since. They closed last night at 174p.
Punch's move will send shock waves through the market for new issues, and is likely to raise doubts over flotations proposed in the coming months.
Mr David Buik at Cantor Index said: "The withdrawal by Merrill Lynch of the IPO of Punch Taverns will have dealt a blow to other aspirants."
Bookmaker William Hill, DIY retailer Focus Wickes and luxury goods maker Burberry are all planning to list on the Stock Exchange.
PA