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DIGICEL HAS ANNOUNCED that it will not be making its initial public offering on the New York Stock Exchange.
The company had been expected to float in the coming days and this would have been the largest IPO ever by an Irish-connected company.
In a statement this evening, the company announced that weak stock market conditions, specifically related to emerging markets, had prevented it going forward with the move.
Digicel said that it had received significant support from what it called a “high quality group of investors”.
The company has not ruled out making its IPO at some point in the future.
What could it have made?
The company had intended to offer 124 million shares in the company for between $13 and $16 each (€11.50 and €14.20).
This would have given the company a valuation of between $1.6 billion and $2 billion (€1.42 billion and €1.78 billion).
Reaction
Commenting on this, chairman of Digicel Denis O’Brien said, “Given our growth outlook, an IPO for Digicel was optional and predicated on achieving fair value for the company.
Recent volatility in equity markets has seen a number of IPOs listing at a discount to their signalled price range and this was a less attractive route for us.
He went on to say that following a $1.5 billion (€1.33 billion) investment in the company over the past three years the company is at a key stage of its growth and would continue to be in a strong position to perform well in its areas of interest.
The company is a leading provider of communications services in 21 markets in the Caribbean and South Pacific regions.
It was launched in Jamaica in 2001 and quickly became the country’s market leader.
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Good to see shops lowering their prices. They make too much of a profit anyway and usually sell items at a massive markup.
@Sam Lean: that’s to pay for rent, staff, utility bills, insurance, the list goes on. Plus if you were to invest your money in opening a shop wouldn’t you want a decent return on your investment and risk. Whatever people are willing to pay that’s what you sell for. How else would you see a scarf in brown Thomas for several hundred euro or a t-shirt for a fiver in penny’s.
@Sam Lean: So why don’t the same rules apply to the likes of petrol stations an power suppliers
Wetherspoons near me – have made the other pubs nearby reduce their prices!
More recently with a lower value sterling,prices should be coming down even more but i wouldn’t be holding my breath.If you still compare pricing in Tesco or other british owned stores,there is a huge disparity on prices especially when currencies are factored in.
So when competing companies sell at a lower price the market reacts and reduces its prices. I think I learned that concept in Bus Org in 1st year at school.
Ya gotta love competition!!
Grafton St and Henry St!! No other shopping areas outside the Pale?
No.
It boggles my mind to see so many people buy the s€€€ that penny’s sell.
Im not a label person but penny’s products are completely substandard.
Sweat shop slavery, made for kids by kids and they pass the slavings on to the customers.
@Trevor Hayden: You’re 100% right. It’s not like people typically shop in Penny’s out of pure neccessity. It’s because people are greedy and want, want, want without a second thought about where their products come from or their ramifications. It’s grotesque. The same people claim people who shop more conscientiously have “notions”. God forbid your ethical clothing costs more than a basic lunch.
@Trevor Hayden: all clothes retailers have sweatshops, people who make clothing for more expensive shops don’t get paid any better
@Rui Firmino: I’m usually 100% in agreement with you except I know for a fact my Lanvin sweaters were made in Italy by workers receiving a fair wage in good condition. Sure, they cost me 4-500€ but the last me years, never change shape, colour or fit and it’s production respected people.
@Titus Groan: Not talking about jigh end clothes, the likes of H&M, Zara, Topman and others pay their workers as bad as Penneys
@Rui Firmino: Yeah, completely true.
It’s called competition but the Grafton days are numbered. The footfall is in decline and the shops are just charging to high prices to pay for the high rents.
20.5% increase in rents predicted for Grafton Street but a 1.5% drop in footfall? Either Savilles are trying to hype up the market (quelle surprise) or some property speculators are just stupid.
So if shops are lowering their prices… does this mean the poor workers making this stuff to satisfy the ridiculous amount of fast fashion consumption who already getting a crap wage are going to be even worse off? Great. I hope this makes everyone feel good.
2 washes and they shrink – built in obsolesce
have your say