Christchurch-based EstarOnline, the owner of the e-tailer CDStar has cancelled its IPO because of the shaky state of the world's technology stocks. The falling NASDAQ and the likewise performance of Kiwi tech shares has prompted EstarOnline to withdraw its submission to list even though it had raised the $10 million it had been aiming for.
EstarOnline CEO Matthew Darby says, "We had the choice of proceeding or withdrawing. It's a tough call when you have $10 million sitting there and you know you can use it but it wouldn't have been prudent with these market conditions. We wouldn't have been getting the best value."
Darby says the company may return to an IPO in a few months time but couldn't give any firm indication as to when because of the uncertainty of the market.
EstarOnline is an unlisted public company with shares traded on the secondary board. This trading has been suspended due to the IPO but Darby says the company will return to the secondary board after it has returned the capital it has raised to would-be investors.
The IPO which was fully underwritten by Deusche Bank, was to have closed on April 26.
Local e-commerce and IT related shares such as Advantage Group, Strathmore Group, IT Capital, Beauty Direct have taken a hammering over the last few days, in the wake of a continuous slide by the NASDAQ.