Carsales shelves IPO plan for South Korean unit

The news: Online auto classifieds company CAR Group has shelved plans for an initial public offering by its South Korean unit, auto marketplace Encarsales.com, due to uncertain market conditions.

The numbers: Carsales announced in September it would retain a 90% stake in its South Korean unit, if the proposed share sale went ahead. Encarsales.com had filed an eligibility review application with the Korean Exchange for an IPO that month.

The context: The Australian company on Wednesday said its South Korean unit had withdrawn the eligibility review application. It said the decision was “made due to equity market conditions not being favourable or supportive of a listing". The Australia-based Carsales.com expanded operations to South Korea, taking full control of the Encarsales.com joint venture in 2017. It also operates digital marketplace businesses in the United States, Chile and Brazil.