China's CDC Corporation (CHINA) says the current poor market environment is the reason it has decided not to pursue a listing of its subsidiary CDC Software in the United States.
"In consultation with our underwriters and members of the CDC Corporation Board of Directors, we have decided to withdraw the IPO of CDC Software at this time," stated Peter Yip, CEO of CDC Corporation. "The capital markets are clearly strained and we have to focus exclusively on improving core operating metrics, generating cash from operations, and preserving cash. We cannot be distracted from these important goals by the effort and expense required for an initial public offering."
The company says it has filed to formally withdraw its registration statement on Form F-1 previously submitted to the United States Securities and Exchange Commission with respect to the planned initial public offering of CDC Software common shares.
As a result of this decision, as well as other planned management changes, Eric Musser, formerly the president and CEO of CDC Software, is leaving the company. In addition, Michael Latimore, formerly the chief financial officer of CDC Corporation, has also left the company to pursue other opportunities. He will continue to work at CDC until the end of July and has agreed to provide consulting services to the company on a part-time, as-needed basis. The company has also commenced a search for a CFO for CDC Corporation.