Emission-free electric vehicle manufacturer Smith Electric Vehicles has pulled its flotation.
Bryan Hansel, Smith’s chief executive officer, said: “We received significant interest from potential investors, however, we were unable to complete a transaction at a valuation or size that would be in the best interests of our company and its existing shareholders. We have instead elected to pursue private financing opportunities to support the execution of our business plan.”
It had expected to sell 4.45m shares at between $16 per share and $18 per share in its upcoming initial public offering.
The company will directly sell 4.2m shares in the offering, with stock holders offering the rest. At the mid-point of the range, the IPO can expect to raise $76m.
The company plans to trade on the Nasdaq under ticker symbol SMTH, with UBS Investment Bank, Deutsche Bank Securities and Barclays fulfilling the role of lead underwriters for the offering. Shareholders include Tanfield Group, a manufacturer of battery powered vehicles, and SEV Group, an electric vehicle company.
The Kansas City-based firm has not offered much information regarding its venture funding. It has only previously announced a $25m series B round in January 2010, but did not disclose any more details.
The proceeds from the IPO will be used to repay debt and for capital expenditures, working costs, and other corporate purposes.
The company posted a $27.4m loss for the first six months of 2012.
Local news provider The Kansas City Star has reported that Smith Electric has scaled back their production goals ahead of a potential cash crunch before the IPO. According to a company filing with the SEC, Smith Electric recently pledged company assets in order to obtain an $11.5m loan to ensure it could operate throughout September.
This article was updated to reflect the IPOs postponement on Friday by Toby Lewis.