Mitsides “freezes” IPO

ASE-CSE dual listing on hold

Chr. & K. Mitsides Ltd., which since July 2005 has received the blessing of the Board of Directors of the Athens Stock Exchange and the Cyprus Stock Exchange Council for a dual listing on the ASE and the CSE, has asked the Securities & Exchange Commission to suspend its listing application.

SEC Chairman Marios Clerides confirmed to the Financial Mirror that the company requested to place the examination of its prospectus submitted to the SEC on hold.

“They have not withdrawn, but asked us to suspend the examination in view of the prevailing environment on both exchanges,” said Clerides.

A spokesman for Laiki Investments, which is acting on behalf of Mitsides, could not reveal any additional information, other than to confirm that the reason for the request for suspension was made because of the changing environment on both exchanges, without clarifying further.

“It’s a matter of optimum timing,” said the LI spokesman.

Mitsides had received the go-ahead to list its shares in the Parallel Market of the ASE and the CSE in the first dual listing to ever take place on both exchanges after BOC. In a joint announcement on June 30, 2005, it was reported that 20% of the new shares would be offered in the Greek market and 10% in Cyprus.

The IPO price, aiming to raise CYP 2-3 mln, would be determined based on the book-building process, and most probably, the company wanted to wait for the right conditions to be in place before proceeding with its application.

The LI spokesman insisted that as yet Mitsides had not yet approached institutional firms, or held investment road shows to drum up support and interest in its dual listing.

However, the company now runs the risk of seeing its application rejected if it is seen to be delaying the process for long, with the risk that it may be asked to resubmit from the start.