CellStar Corp., which provides handset logistics and distribution to carriers, said it will delay its planned initial public offering in China due to the company's flailing Taiwan operation and the depressed Chinese stock market.
The company said its CellStar Taiwan business failed to score a major bid to provide handset distribution and logistics for a major Taiwanese carrier. Thus, the company is considering leaving the business out of its IPO, which would require a revised filing. Further, CellStar said the Asian stock markets have experienced a recent downturn, and several Chinese companies have recently delayed or reduced the size of planned stock offerings. CellStar said the situation may improve by the fall, but "because the IPO is subject to numerous conditions, there can be no assurance that the IPO will be completed."