* Has not determined when to launch intended NYSE listing
* Cites current U.S. equity market conditions
* To remain listed on London’s junior AIM market
(Adds background, share price)
LONDON, June 8 (Reuters) – India-focused film producer and
distributor Eros International PLC said it was delaying
plans for a U.S. initial public offering of up to $250 million,
blaming current conditions in the country’s equity markets.
The move to the New York Stock Exchange by Eros, behind
Bollywood films including “Zindagi Na Milegi Dobara” (You Only
Live Once) and “RA.One”, had appeared imminent after the firm
made an announcement in May regarding U.S. listing regulations.
“Given the current U.S. equity market conditions, the
company has not yet determined when to launch its intended NYSE
listing,” Eros said in a statement on Friday.
Shares in the company traded down 13 percent to 220 pence at
0720 GMT, valuing the firm at around 90 million pounds ($140
million).
A further announcement would be made when more clarity on
timing was available, Eros added.
Gripped by fears that Europe’s debt crisis is driving the
world economy into a ditch, companies are delaying plans to
raise capital amid weak investor demand for IPOs, particularly
after Facebook’s recent botched IPO.
Eros said in March it would cancel its listing on London’s
junior AIM market and move to a U.S. listing as capital markets
there would provide increased liquidity, access to additional
capital on better terms and a more relevant peer group.
The company, which will remain listed on AIM in the
meantime, had named Deutsche Bank Securities, BofA Merrill
Lynch, Citigroup and UBS Securities as the underwriters to the
offering.
($1 = 0.6420 British pounds)
(Reporting by Sarah Young)