Satellite communication system operator Inmarsat Ventures has postponed its long-awaited initial public offering (IPO) due to the current exceptional market conditions.
The London-based company committed to an IPO in April 1999 with its move from an intergovernmental organisation to a UK limited company. Inmarsat had originally hoped for an IPO in the fourth quarter of last year, but the collapse in technology stock at that time meant that market conditions for the move were not right.
It has now delayed the move on advice from its IPO co-ordinator Morgan Stanley. It remains committed to an IPO, however, when "financial market conditions have improved sufficiently".
President and chief executive Michael Storey says: "The current market conditions following the recent unprecedented events in the USA would make it difficult for Inmarsat to realise fair value for our shareholders," .
The postponement does not affect Inmarsat's ability to fund future operations, including development of the next-generation Inmarsat-4 satellites, which will provide broadband voice and data services to mobile users from 2004, it says.
Source: Flight International
