Directories business Yell and DIY chain Focus Wickes have both abandoned plans to float because of rocky stock market conditions, it emerged today.
Yell said it had decided to withdraw the plans in light of poor equity market conditions.
Focus Wickes said it was postponing its float in the light of adverse market conditions.
The moves follow a torrid time on the stock market last week, which slumped in the wake of the WorldCom accounting scandal.
The tough stock market conditions have made it difficult for companies to come to market.
HMV disappointed investors when its shares slid on their debut, while Punch Taverns delayed and re-priced its float before going ahead.
In addition, fashion house Prada last week postponed its flotation.
Focus's decision came only hours before the group was due to price its shares, while Yell was expected to price its offer tomorrow evening.
The DIY group had been expected to be priced at around £1 billion, scaled back from a £1.4 billion price.
Yell, an offshoot of BT, was expected to be valued at the bottom of its £1.8 billion to £2.3 billion range.
Alex Scott, analyst at Seven Investment Management, said he was surprised by Focus's decision because it was more of an old-economy stock, currently favoured by the market over technology-focused shares.
He said: "Both of these are not in a situation where they have to do it no matter what the price."
But flotations were still possible for the right companies.
Mr Scott said: "If it is the right business at the right price, there is nothing to stop them going for it now. It would be difficult, but if a business plan needs a flotation it can be done."
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