Linuxcare Seeks Withdrawal of IPO Due to Markets

WASHINGTON (Reuters) - Linuxcare Inc., provider of services for the Linux
operating system, requested on Monday that its planned initial public
offering to net approximately $56.6 million be withdrawn.

``The company has elected not to proceed with the offering due to general
market conditions and a determination that it would not be in the company's
best interest to proceed at this time,'' according to a filing with the
Securities and Exchange Commission.

Linuxcare, based in San Francisco, had planned to sell 4.5 million shares
of common stock for between $13-$15 per share and had sought to list its
shares on Nasdaq under the symbol ''LXCR'' when it went public.

It had planned to use the proceeds for expansion of its information
technology infrastructure, working capital, and funding operating losses.
Credit Suisse First Boston, Chase H&Q and Robertson Stephens were the
underwriters for the IPO.

The statement from Linuxcare , which had initially filed to go public in
January, came minutes after a similar announcement from Internet firm
Beatnik Inc. They are the latest companies among a slew of others to have
pulled IPOs and secondary offerings in recent weeks because of wild swings
in U.S. financial markets


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