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Mtone Wireless Withdraws

Jeffrey R. Hirschkorn, Senior IPO Analyst, Aug. 16, 2004

Not citing any specific reason for its actions, Mtone Wireless (proposed: MTWI), a provider of value-added mobile services on a subscription bases to customers in over 200 cities in China, withdrew its previously filed IPO. The deal, which sought to raise $55 million, listed Merrill Lynch as the lead underwriter.

Perhaps, the depressed trading of fellow Chinese concern [involved in the same market] Linktone (LTON) played a role in the decisions. Shares of Linktone recently changed hands at $6.48, well off its IPO price of $14. The decline comes after strong trading on its first day where shares opened at $19.

While InSight Health Services, an operator of facilities for diagnostic imaging services, withdrew plans for its IDS or income deposit securities IPO, citing market conditions. No specific information or trading symbol for its proposed offering on AMEX was filed. The company intended on pricing $675 million of common and debt in its IPO. CIBC World Markets and Banc of America Securities were joint book runners.

In this case, the market withdrawal by American Seafoods (proposed: SEA) last week, could have played a role in the decision. After several false steps and underwriting changes, American Seafoods derailed, citing market conditions. It proposed its IPO to the public in the form of an IDS. To date, only one IDS has joined the market and the results have been less than flattering.

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