Liquidnet’s plans to go public this year are on hold as a result of the current market turmoil.
The agency brokerage, which had planned to raise as much as $500 million in an initial public offering this year, told Reuters it would wait because of poor market conditions. In addition, it doesn’t expect a turnaround in the market until 2010.
Stock prices of financial institutions have dropped considerably this year. The lower valuations would impact any valuation Liquidnet might receive, according to Seth Merrin, Liquidnet’s founder and chief executive.
Merrin was interviewed by the news agency in Tokyo last week. Liquidnet isn’t the only company shying away from an IPO. There have been only two IPOs in the U.S. at all since August.
A Liquidnet spokesman said the company continues “to refresh” its financial data in the IPO document quarterly, as it is required by law, and has not officially withdrawn from the public offering.