spacetoday.net: Eutelsat withdraws IPO

Eutelsat withdraws IPO

Posted: Fri, Oct 28, 2005, 6:22 AM ET (1022 GMT)
European satellite operator Eutelsat has cancelled plans to perform an initial public offering (IPO) of stock, citing limited demand. Eutelsat had planned to sell up to $800 million in stock in the IPO, but announced earlier in the week that it had reduced the share price in an effort to stimulate interest in the IPO. However, the company was reportedly concerned that the share price could drop sharply after the IPO given a "volatile market environment" on the Euronext stock exchange in Paris, despite good performance by several other IPOs from satellite operators in recent months. Eutelsat had hoped to use the proceeds from the IPO to reduce its debt.