NetValue cancels IPO plans
The developer of ways to supply promotional discounts on the Net will instead seek investors in a private deal being brokered by its new CEO.
R. Scot Wills, who became the company's president and CEO in June, said he chose to pull out of the initial public offering to try "other things [he] wanted to do with the company," Bloomberg reported.
Former CEO Michael Clark filed to take NetValue public in January. The company, which is trying to develop ways of supplying coupons and promotional discounts via the Net, had planned to sell 3.6 million shares for $5 each, according to its "="" rel=""> regulatory filing with the Securities and Exchange Commission.
ValueNet presented a registration withdrawal statement to the SEC yesterday to cancel its IPO, Bloomberg reported.
The company, founded in 1994, has lost up to $20.8 million while generating total revenues of only $1 million.
Other companies have also opted out of going public recently, in the face of shaky markets. Push-technology pioneer PointCast, for example, decided against proceeding with its IPO in July, in part to explore possible partnerships with other companies.
Earlier this month, CitySearch also postponed its initial public offering because the company has entered into an agreement with USA Networks' Ticketmaster to merge CitySearch with Ticketmaster Online.
Bloomberg contributed to this report.