Liquidnet drops IPO plans

3 December 2008

Electronic trading platform Liquidnet has reportedly dropped its plans for an initial public offering (IPO) until 2010, citing poor market conditions and continuing financial turmoil.

The exchange's holding company had originally planned to go ahead with an IPO involving around $500 million of its common shares by the last quarter of 2008, Reuters reports.

However, Liquidnet's founder and chief executive Seth Merrin told the news service that "a lot has changed" since then.

Indeed, the news service said, stock markets around the world have dived since the summer, with the Dow Jones Industrial Average dropping by over 30 percent since Liquidnet filed for an IPO on July 2nd.

The markets have also been hit by the shockwaves of the worldwide credit crisis, which brought down Lehman Bros. and Washington Mutual within a month of each other.

Mr Merrin said financial stocks would now have to stage a strong recovery before Liquidnet would move ahead with its share issue.

Commenting on the future of the IPO, he said: "My guess is probably it would be sometime in 2010."

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