Oct 17, 2008 : Consonus Drops Nasdaq IPO
📅 - Taking a step back from becoming a public company, data center and IT managed services provider Consonus Technologies (consonus.com) has announced Friday it intends to delist its common stock from the Nasdaq Capital Market exchange, thereby halting its attempt to launch an initial public offering.
According to the company's announcement, Cary, North Carolina-based Consonus expects its common stock to be delisted by November 6, 2008. Because of the termination of the IPO, Consonus stock never saw trading, but the company states it is still "a leading national provider of IT infrastructure, data center and managed services solutions." In late April, it opened a data center in West Valley City, Utah.
While it has a portfolio of secure and reliable data centers across the US, market pundits including The Street's Kevin Kelleher have been quick to pan the company. Consonus was expected go public in September, but, he writes, "a turbulent stock market and a rocky listing for rival Rackspace gave underwriters pause." Today's announcement has set back the company's IPO expectations indefinitely.
It originally filed for an IPO in May 2007, however it had to revise its projections and by the time the IPO fund was raised, it would be reduced to a luke-warm $27 million from its the initial expectation of $48 million.
The overall expectations for data center-building companies like IBM and Hewlett-Packard are receiving investor "buy" ratings because they attract enterprise clients. Consonus, while offering the same comprehensive services tends to deal with less lucrative medium-sized companies and the university market.
While much attention has been paid to Consonus's IPO, the company has been seeking other developments. In early September, Consonus hired new corporate development executive Michael Bucheit and sales and marketing executive Robert McCarthy.
According to the company's announcement, Cary, North Carolina-based Consonus expects its common stock to be delisted by November 6, 2008. Because of the termination of the IPO, Consonus stock never saw trading, but the company states it is still "a leading national provider of IT infrastructure, data center and managed services solutions." In late April, it opened a data center in West Valley City, Utah.
While it has a portfolio of secure and reliable data centers across the US, market pundits including The Street's Kevin Kelleher have been quick to pan the company. Consonus was expected go public in September, but, he writes, "a turbulent stock market and a rocky listing for rival Rackspace gave underwriters pause." Today's announcement has set back the company's IPO expectations indefinitely.
It originally filed for an IPO in May 2007, however it had to revise its projections and by the time the IPO fund was raised, it would be reduced to a luke-warm $27 million from its the initial expectation of $48 million.
The overall expectations for data center-building companies like IBM and Hewlett-Packard are receiving investor "buy" ratings because they attract enterprise clients. Consonus, while offering the same comprehensive services tends to deal with less lucrative medium-sized companies and the university market.
While much attention has been paid to Consonus's IPO, the company has been seeking other developments. In early September, Consonus hired new corporate development executive Michael Bucheit and sales and marketing executive Robert McCarthy.
Reads: 1838 | Category: General | Source: TheWHIR : Web Host Industry Reviews
URL source: http://www.thewhir.com/marketwatch/101708_Consonus_Drops_Nasdaq_IPO.cfm
Want to add a website news or press release ? Just do it, it's free! Use add web hosting news!
📅 - 
📅 - 
📅 - 
📅 -