Digicel calls off €1.8bn flotation on New York stock market
Digicel, the telecoms group owned by billionaire Denis O'Brien, last night cancelled a planned stock market debut in New York that could have valued the business at as much as $10bn (€9bn).
It was widely expected that the shares would begin trading on the New York Stock Exchange on Friday.
Digicel had been expected to raise proceeds of between $1.8bn and $2bn (€1.6bn and €1.8bn) from the highly anticipated share sale.
It would have been the second-biggest stock market flotation in the United States this year.
Digicel said that, despite significant support for the initial public offering (IPO) from a high quality group of investors during the marketing period, "current conditions, particularly in emerging markets, have impacted transaction momentum over recent days".
Mr O'Brien is chairman of the group.
"Given our growth outlook, an IPO for Digicel was optional and predicated on achieving fair value for the company," he said last night. "Recent volatility in equity markets has seen a number of IPOs listing at a discount to their signalled price range and this was a less attractive route for us."
There were five stock market flotations on Wall Street last week and in all of them the shares offered to the public were sold at below the expected range.