New Zealand ISP Abandons IPO Plans

3:13 am on October 21, 2005 | Category: Business, Web Services

New Zealand broadband provider, Woosh, has decided to abandon their plans for a public stock offering, but claim that the decision is not due to weakness in technology or competitive position.

Details on the move, or rather lack thereof, were very vague. Company chairman, Rod Inglis simply commented that: “we’ve assessed recently that it’s much more desirable for the company to stay private at this stage.”

Numerous market sources, however, indicate that Woosh changed its plans because they couldn’t get the IPO asking price they wanted. There is some speculation that the company’s unfavorable competitive position and low caliber technology may have scared off potential investors.

Mr. Inglis claims that there is nothing wrong with Woosh’s broadband technology, saying that he uses it everyday himself, and never has a problem. It is an undeniable fact, however, that the internet connections offered by Woosh are significantly slower than those of other broadband companies in New Zealand.

Because of this, it may indeed be a wise decision for the company to stay out of the stock market for now. Inglis says that Woosh will “carry on exactly as we have been, with our existing business plan,” but hopefully they will also work on improving their market position.

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    Published by TeleClick Enterprises
    Edited by Jeremy Maddock