Oliver Hirt, Emma Victoria Farr

LONDON (Reuters), EQT is waiting to list Galderma, its £22 billion skin care company. Market volatility and Europe’s recession fears have cooled investor interest in Galderma. According to two sources, this is the biggest listing in nearly two decades.

According to anonymous sources, the listing was likely to occur in Zurich in early this year. It could also happen later in the year or in the beginning of next year, depending upon market conditions.

Galderma’s IPO, if successful, would be the largest initial public offering in Switzerland (IPO). This is since 2004, when Zurich listing records began online. Although Novartis’ 2019 spinoff of Alcon by Alcon (NYSE? ) resulted in a larger deal, it didn’t raise new cash from investors.

EQT refused to comment.

Galderma spokesperson said that the company is continuing to “prepare the business for its next chapter of growth”, however, no decisions have been made about the timing for a potential listing.

“We’ve been watching the market and will continue to do so,” he stated.

EQT stated in February that it will continue preparations for Galderma’s listing, but did not give a timeline. This is after an April plan to float on Swiss SIX in April had been delayed by the Ukraine conflict.

Blockbuster deals are key for restarting IPOs across Europe following Russia’s invasion in Ukraine. This prompted many companies to put off their plans to become public.

However, equity capital markets are not expected to recover against the backdrop of recession in the region.

As signs of a downturn became more apparent, investor morale fell to the lowest point since June 2020 in the euro area in May.

Galderma, previously part of Swiss giant Nestlé, was sold to an investment consortium led by EQT and including Singapore’s GIC and the Abu Dhabi Investment Authority for $10 billion in 2019.

It sells products and services for the dermatology industry, such as dermo-cosmetics, injectable aesthetics, and therapeutic dermatology.

The deal is still being pursued by investors, but advisers advised EQT not to proceed until August and then revisit it in September, according to sources.

Goldman Sachs (NYSE:), Morgan Stanley Credit Suisse and Bank of America (NYSE) are co-ordinating the listing. Citigroup (NYSE:), Jefferies & UBS