Estaronline To Wait For "Better Environment"
EstarOnline, the New Zealand based e-commerce development company, has decided to put on hold its proposal to list on the NZSE, saying it did not want its business to be negatively affected by the current slump in international technology stocks. The money received in relation to the offer will be returned to investors.
Matthew Darby, CEO of EstarOnline, said today that anything less than a strong market debut would not be satisfactory and the current fluctuations of the NASDAQ index put this under threat.
"We will look to list on the NZSE's main board again in a better environment but in the meantime will continue to be listed on the secondary market", Mr Darby said.
The underwritten issue had been fully subscribed through firm allocations to brokers and institutions. However, the NASDAQ gyrations raised concerns as to how the shares would perform once listed on the NZSE main board.
"Our primary concern is to protect our current share holder values. Listing on the NZSE in the current climate would not be beneficial for our existing investors nor those investing with us for the first time," Mr Darby said.
He said the company had an "excellent business plan" that had attracted strong international interest in both the retail and back- end software of CDstar.com.
"When the market turmoil is over, the Internet will still be with us, and EstarOnline will still be with the Internet", he said.