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Globoforce now plans Nasdaq float for end of the year

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ERIC MOSLEY: Delay for IPO

ERIC MOSLEY: Delay for IPO

ERIC MOSLEY: Delay for IPO

ERIC Mosley's Globoforce, which dramatically pulled its €340m Nasdaq flotation late last Thursday night, is now planning to IPO in the US later this year.

"IPO continues to be the preferred option for the company – we're probably talking the end of the year or Q1 next year," sources told the Sunday Independent.

The Globoforce flotation would have been the biggest Irish technology listing on Nasdaq since Riverdeep's debut during the dotcom boom of 2000.

"It has loads of capacity, is really strong with lots of cash. Business continues to grow, so IPO at this time was not something the company had to do ... they want to do it, but they want it at the right price."

It is understood the proposed IPO had attracted significant investor interest and was four times oversubscribed. However, the pricing of the offer had come under real pressure, with Globforce and its advisers forced to cut the issue price.

"They dropped the price earlier in the day and they weren't going to do so again," sources added.

"Despite receiving overwhelming interest in our initial public offering, we have decided to postpone our offering until market conditions are more favourable for our company and our customers," Globoforce boss Mosley said.

"Our growth objectives and market opportunity remain the same."

Globoforce, which helps big corporations provide rewards for their employees, originally planned to raise €54m by offering 4.4 million shares on the Nasdaq. The company, founded in Dublin in 1999, has an 80-strong client list, which includes GE, Procter & Gamble, Symantec, Thomson Reuters and JetBlue. Investors include Barry Maloney's Balderton Capital, which has a 41.5 per cent chunk, with US venture fund Atlas, which has a 31.4 per cent slice.

Other investors include Riverdeep founders Patricia Burke and Ed Wallace and former Irish Life & Permanent treasury head David Gantly.

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