Next Capital and Macquarie had sought to raise up to $262 million at a price of between $1.10 and $1.50 a share.
Milford Asset Management executive director Brian Gaynor said institutional investors thought the proposed share price range was based on highly optimistic forecasts about how well Hirepool would perform.
He said there were questions about its profit forecasts and the company was forecasting it would continue to benefit from the upturn in construction.
But Mr Gaynor said it had not done as well as it should have in the past two years when the construction sector was doing very well.
He said there was often tension between the company that wants to list and its investment bankers and the institutions which are looking at the price very carefully and want to set the price.
"I think that institutions in general they seem to be looking at a price below the $1.10, probably below $1, and it does look like the company and its vendors and the investment bankers weren't willing to look at that."
Mr Gaynor said he wouldn't rule out Hirepool's owners seeking a listing in the future.