Brexit doubts set to claim first float victim with VPS Healthcare warning on its IPO

Brexit looks set to claim its first float victim as hospital group VPS Healthcare warned its London IPO is on the rocks.

The Abu Dhabi-based company had been eyeing a float on the London Stock Exchange this year but is now reconsidering, turning its attention towards the US or Singapore instead.

It is understood uncertainty around Brexit is behind the decision, as well as slowing growth in Germany and France. The company, which operates 20 hospitals and more than 125 medical centres across Europe, the Middle East and India, hired Rothschild in May last year to look after the process.

Details on the size of the offering have not been made public.

The move is a knock for London, which had been buoyed last week by Dubai-based payment giant Network International saying it will undertake a $3 billion (£2.2 billion) float next month. London has a strong record with Middle Eastern hospital groups, with NMC Health a strong performer on the FTSE 250 since it joined back in 2012. Al Noor Hospitals was also listed in London in 2013 before being taken over by rival Mediclinic International in 2016.

VPS Healthcare could not be reached for comment.