Eutelsat cancels IPO plans

Volatile market conditions have forced the European private equity-backed satellite operator to abandon its plans for flotation.

Europe’s third-largest satellite operator Eutelsat has cancelled its planned initial public offering on Euronext Paris due to difficult market conditions.

According to a statement from Eutelsat Communications, the abandonment of the firm’s IPO plans came despite the support of institutional investors and an over-subscribed order book. The shares would not fairly reflect the company’s value after listing due to a volatile market, the statement added.

Investors in Eutelsat include Paris-based private equity firm Eurazeo and Nebozzo, an investment vehicle owned by US-based firms Texas Pacific Group and Spectrum Equity Investors.

At the beginning of the month, Eutelsat announced it was hoping to raise up to €1.8 billion ($2.2 billion) through the flotation, before cutting the price of the offering by around 20 percent earlier this week.

Eutelsat provides satellite broadcasting services across Europe, the US eastern seaboard, Africa and the Pacific. It was established as an intergovernmental organisation in 1977, before being incorporated as a France-based private company in 2001.