UPDATE 3-Caribbean telecom company Digicel hangs up on IPO

martes 6 de octubre de 2015 18:35 GYT
 

* Cites market conditions in emerging markets

* Co was expected to raise about $2 bln from U.S. IPO (Adds analysts' comments, IPO market background)

By Rachel Chitra

Oct 6 (Reuters) - Digicel Group Ltd, the Caribbean telecommunications company that sponsors sprinter Usain Bolt and the West Indies cricket team, has decided to withdraw its plans to go public for now, citing "current conditions, particularly in emerging markets."

The company, owned by Irish billionaire Denis O'Brien, was expected to raise as much as $2 billion from its U.S. IPO.

The Hamilton, Bermuda-based firm said it has seen a number of IPOs listing at a discount to the expected price range. "This is a less attractive route for us," it said.

Last week, all the five companies that made their market debut, including Surgery Partners Inc, Performance Food Group Co and Edge Therapeutics Inc, cut their offer price below the expected price range.

With volatility across global markets this year, 46 companies withdrew their IPO plans as of Sept. 30, compared with 38 companies last year, according to Renaissance Capital data. (bit.ly/1MXKnRq)

Going forward, some IPO deals may require a 20 percent pricing discount, compared with the benchmark 10-15 percent range, in light of the current volatility, bankers noted at the IFR ECM event held at Thomson Reuters' offices last month.   Continuación...