ICL Invia abandons IPO as Helsinki exchange takes a hit

ICL subsidiary Invia has temporarily abandoned its plans for an IPO, blaming unfavourable market conditions following a plunge in high-tech shares on HEX, the Helsinki stock exchange.

The pan-Scandinavian software and services company had hoped to raise £630m with the flotation to fund the integration of its Danish, Norwegian and Swedish divisions. The company also hoped the money raised would finance its strategic shift from an IT services into an ebusiness services firm.

The Helsinki borse suffered losses of 8.7 per cent today, largely attributable to the performances of mobile operator Nokia and telco Sonera.

A spokesman for ICL Invia said the cancellation has nothing to do with ICL's overall performance and is entirely due to the condition of the Finnish stock exchange. He added that the company intends to push ahead with the IPO before the end of the year.

Swedish investment bank Enskilda Securities, which bought a 16.8 per cent share in the company earlier this year, is co-ordinating the flotation plans.