International trade exchange company Bartercard has withdrawn from its
planned AUS$20 million (US$12 million) initial public offering (IPO) and
float on the Australian Stock Exchange.
The company cited uncertain market conditions for its decision to halt
the IPO, despite support from its members and public investors.
Though the Bartercard members priority share allocation recently closed
over-subscribed, executive chairman Wayne Sharpe said stock market
conditions had caused large investors and institutions to refrain from
investing in new floats.
“Unfortunately our timing was slightly off. When the Nasdaq crashed, we
were in the final stages of preparing to launch our float, and we were
really too far down the track to delay things,” said Sharpe.
The company plans to review the float option later in the year, but will
immediately have to redetermine its method of funding.
“We are well capitalized and expect to finalize a significant
acquisition soon,” said Sharpe. “It will be business as usual for our trade
exchange and members, and this development does nothing to slow the
continued growth,” he said.