Feeds

Morse puts IPO on backburner

Market conditions to blame

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

Morse Group, the leading UK Sun reseller, has blamed unfavourable market conditions for shelving its £600 million flotation plans this year, according to yesterday's Sunday Times. The company will attempt an IPO next year, the newspaper says. Morse has never announced publicly its intention to float, but the Sunday Times usually has a good handle on this sort of information.

We have noted elsewhere our difficulty in understanding how a £600 million price tag could be attached to Morse (see Morse trails IPO plans). But it is equally difficult to see how the -– admittedly very profitable -- company could get away a £600 million IPO next year. Right now, computer reseller and distribution stocks are out of favour with UK investors –- Computacenter's May IPO, for example, opened trading today at 475p, against the near 900p per share it hit in the heady days after flotation. Morse suffers too because it is a small cap company (with designs on medium cap status). And UK market sentiment has turned against small and medium caps since the Sunday Times broke the news of Morse’s float plans in June. The last three months have been "the quietest for new issues for over a decade", according to the Daily Mail. It quotes KPMG Corporate Finance who says it is now "almost impossible to float small businesses". Neil Austin, head of new issues at KPMG, told the paper: "The tap turned of at the end of the July. It could be several months before we are out of the doldrums." ® Click for more stories.

Internet Security Threat Report 2014

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.