Smartstream IPO off

Just to close off our previous stories, Smartstream has effectively abandoned its plans for an IPO. Having reduced price expectations from £300m to under £200m, there was demand for further price erosion (possibly to nearer £100m) which clearly TA (Smartstream's PE backers) found unacceptable. We would expect a trade sale announcement soon. Once you have done all the IPO due diligence, it's just the time to quickly buy a 'clean' company.

But this cancellation will be a blow to the likes of Telecity, Sophos and others lining up for autumn IPOs.

We are clearly living in more difficult times.