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Companies that planned IPOs get cold feet because of crisis

Four companies that won state subsidies last year to list their shares on the Budapest Stock Exchange are hesitating over IPOs because of the global financial crisis, business daily Napi Gazdaság reported.

ISP NordTelekom plans to list its shares at the end of May, but only if the situation on capital markets improves, sales director Géza Földesi told the paper.

Property company Z-Broadband planned to list its shares some time in Q1, but it has pushed back its deadline because of the deteriorating economic situation, said CEO László Németh. The company might still list by year-end, he added.

Catering industry supplier Matusz-Vad has also put off plans to list its shares from January to March, at the earliest, though the environment is not favorable for an IPO, communications director Klaudia Tanos said. The company sees its revenue growth slowing to about 15% this year from 25%-30% earlier.

Bottled gas trade and storage company KEG is the exception: the company could list its shares on the bourse within a month, though it wants to test interest on the OTC market first, said CEO György Matyók. He added that demand for PB gas has picked up because of the gas crisis at the beginning of January.

KEG is 90% owned by veterinary drug maker Phylaxia Pharma. (MTI – Econews)