The turmoil in the markets could not have come at a worse time for Esat Telecom which plans to float part of the group on the Nasdaq next month. This week the company began its US roadshow talking to potential investors in a bid to persuade them to buy up to 30 per cent of the company. Although the stock will not be priced until the end of next week, Esat has said it expects that the shares will be offered at $12-$14. It is also floating on the Easdaq, the European equivalent of the Nasdaq.

However, the pricing forecast was made before the market turmoil and industry analysts say it is likely that the company may have to revise the price, depending on what happens in the US market over the next couple of days.

Esat Telecom provides fixed line telecoms services for the corporate sector, but is also a 45 per cent shareholder in Esat Digifone which provides the second GSM network. Esat is hoping to raise £53 million to develop its infrastructure.

Mr Brendan Dowling, of Davy Stockbrokers, which is one of Esat's underwriters, admitted yesterday that it was not the ideal time to be launching an IPO (initial public offering).

He said it was too early to say what effect the market crashes would have on Esat's price.

Mr Dowling said with the markets reaching new levels, albeit lower ones, investors may be more confident. He said there had been some unease among investors over the past couple of years, because they felt that prices were too high.

He added that the markets were still showing gains over the beginning of the year.

Esat declined to comment on the proposed flotation.

The company and its advisors will be reassured by last night's recovery on Wall Street, but the volatility of the markets will not help in selling its shares to potential US investors.