UPDATE 1-Australia's Stirling childcare company cancels $180 mln IPO

* Float cancelled as capital raising falls 10 pct short

* Decision may affect other float plans

* Stirling may consider private equity sale

(Adds asset manager quote, float detail)

By Byron Kaye

SYDNEY, March 17 (Reuters) - Australian childcare centre owner Stirling Early Education Ltd on Monday said it had cancelled plans for a A$200 million ($180 million) public float after it failed to attract investors following an earnings downgrade.

The company had planned the IPO run by Macquarie Group Ltd

MQG.AX but downgraded its 2014 earnings forecasts in March following lower attendance than expected in February, a source familiar with the aborted listing said.

The decision to shelve one of the first floats of the year will likely weigh on private equity firms which are closely watching for signs that the IPO market remains a viable exit option amid global political and economic uncertainty.

"This is coming on the back of a bit of uncertainty about China and also the Crimean political issues," said Acorn Asset Management head of equities Douglas Loh, referring to reports of slowing economic growth forecasts in China and Crimea's vote to leave Ukraine and join Russia.

"Once the political uncertainty settles down and people get a better read of what's happening in China, I think the market should come back."

The biggest Australian float of the year so far, vehicle lease company SG Fleet Group Ltd , is yet to trade over its A$1.85 issue price since its March 4 listing. It was trading at A$1.77 on Monday.

Stirling's decision to scrap its float, which it made late on Friday after Macquarie fell about 10 percent short of its A$200 million target, raises doubts over its future as it was formed with the purpose of using money raised in an IPO to buy high-end childcare centres around Australia.

In a statement, Stirling said it still believed in the business model and would "consider the options available to progress the company's objectives".

The company may consider a sale to a private equity firm, the source said.

($1 = 1.1064 Australian Dollars)

(Reporting by Byron Kaye; Editing by Richard Pullin and Stephen Coates)

((byron.kaye@thomsonreuters.com)(+612 9373 1815))

Keywords: AUSTRALIA STIRLING/