Wagamama’s private equity owner is to abandon plans to float the noodle chain after receiving higher-than-expected offers. Financial Times

Lion Capital is understood to have changed its mind on an IPO of Wagamama after investors balked at its target valuation of £225m.

With the pricing of the IPO due to be decided tomorrow, Lion Capital is expected to opt instead for an auction of Wagamama between a handful of interested bidders.

It has 51 stores in the UK and opened to in the US this year, in Boston.

The IPO prospectus outlines plans for a total of 61 outlets in the UK by next April and a long-term potential to reach 150.

Rothschild has been appointed to handle the sale.