Software group Spectel shelves IPO

 

Irish software developer Spectel has scrapped its plans for an initial public offering due to the ongoing weakness of the technology sector.

The flotation was expected to raise €46 million from a public flotation on the Irish and London stock exchanges.

The offering - the first scheduled in Dublin since a severe downturn hit the sector in 2001 - would have netted €20 million for the company's chief executive, Mr Gerard Moore, and would have valued Spectel at 7#8364;222 million.

Commenting on the cancellation of the flotation today, Mr Moore said that the markets for telecoms and technology related transactions are still extremely challenging.

"Whilst we are disappointed not to be able to complete the transaction, the Board decided that price levels achievable in this market did not fairly reflect the value of this strongly growing business." he added.

He said the company's profitability and growth prospects remain very good and the business itself continues to perform strongly. "We will also continue to actively pursue our acquisition strategy and will consider returning to the capital markets as and when market conditions improve," he said.