Information technology (IT) products distributor Infocan has decided to delay its listing on the Growth Enterprise Market (GEM), despite securing approval, because of poor market conditions, according to managing director Henry Tam.
The company, which also provides training services, is one of 11 candidates that had received in-principle approval from the GEM listing committee as of the end of last month but had not gone public.
Poor investment sentiment towards GEM stocks has undermined the progress of many listing candidates.
The GEM index has fallen 45.7 per cent from six months ago, closing yesterday at 329.18.
According to sources, the company is aiming to raise less than HK$100 million. Like other candidates with pending listings, the company does not want to sell shares at depressed valuation levels.
'We have a good story,' company consultant John Rempel said. 'We are ready to go anytime. We don't want to sell ourselves cheap.'
Unlike some Internet start-ups whose unproven business models could not generate stable cash flow to support expenses, Mr Rempel said Infocan did not need fresh funds to keep its operations going.