26 May 2000

European online retailer Letsbuyit.com announced yesterday that it has abandoned plans for its June 7 flotation on Frankfurt's Neuer Markt. Instead it will consider a private placement. The decision to abort comes just days after postponing the IPO because of current market disenchantment with e-stocks.

According to chief executive Martin Coles, although the company has a heavy cash-burn rate, it retains €30m in reserve for the next period. It had hoped to raise just over €100m via the flotation. Letsbuyit investors, among them Deutsche Bank, NeSBIC and Gilde, were "very positive" about providing more funds, said Coles. He added that any additional funding would be "no way near" the amount they had hoped to raise on the Frankfurt bourse.

The decision to pull the listing came the day after the company had insisted it would go ahead as planned.

News source: Financial Times