A group of 27 Danish institutional investors say they will launch a legal action against the former management of OW Bunker, a shipping company that filed for bankruptcy last year just six months after listing, and the private equity firm that brought the company to market.

It is an unusual example of investors in an IPO planning legal action after the listing has turned sour. The investors, who include the Danish national pension fund ATP as well as private sector funds such as PFA and Lærernes Pension and the Danish arms of various Scandinavian life companies and banks, said in a statement there were "errors and flaws" in the company's IPO prospectus, as well as non-compliance with Danish stock exchange rules on disclosure.