Digital United bows to the inevitable

Taiwanese ISP and web-hosting services provider Digital United Holdings has postponed its Nasdaq IPO in the face of investor resistance to Asian internet stocks.

The roughly $100 million common share offering for Digital United Holdings was finally pulled on Monday after failing to build a big enough order book within the company's original indicative price range.

Led by Donaldson, Lufkin  Jenrette DLJ, with Salomon Smith Barney as joint-lead and UBS Warburg as co-manager, the deal was to have comprised 10 million common shares with a 1.5 million greenshoe. An indicative price range had been set at $9 to $11, equating to a revenue multiple of 6.5 to 7 times projected 2001 revenues.

Bankers say that since the company is not in any immediate need of funds, it has decided to postpone the deal...

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