Amcon Solutions Group (ASG) has deferred an initial public offering (IPO) owing to unstable conditions in the Australian sharemarket.
The IT outsourcer had planned a $6.85 million capital raising and an immediate ASX listing, but said it deferred the IPO because of the "impact of international market movements" on locally listed companies.
"In a nutshell, it is a very bad time to list a company on the ASX and we have chosen to protect our investors' interests," ASG chief executive Geoff Lewis said.
Lewis insisted that demand for ASG stock had been high nonetheless.
The IPO will proceed later this year when market conditions improve, Lewis said.
He assured shareholders last month the company was in a strong financial position, and had just banked $3.15 million in subscription funds from Compaq Computer, who has a 15 per cent stake in ASG. Lewis told shareholders in March that the company had a secure growth path without the proceeds from a float. Specifically, he said ASG would post a strong revenue increase this year and continue to expand "conservatively" in the short term here and abroad.
ASG posted a 124 per cent profit increase in the 1999 fiscal year and 68 per cent growth in 2000.