NEW YORK (Reuters) – O’Gara Group Inc (OGAR.O), a homeland security specialist firm, postponed its planned initial public offering Tuesday because of “market conditions,” according to an underwriter.
The Cincinnati-based company had planned to raise about $120 million in the IPO, led by Morgan Keegan, by selling 8 million shares.
O’Gara attempted to price its IPO on a day that saw the Dow Jones industrial average .DJI fall 3.79 percent.
The deal was originally set to price last Tuesday, but last week O’Gara put off the pricing and lowered its estimated price range to $14 to $16 per share, from $17 to $19.
O’Gara company sells security and defense products to clients such as the U.S. military and German automakers Mercedes-Benz, a division of Daimler AG (DAIGn.DE), and BWM (BMWG.DE)
O’Gara had planned to use the proceeds of the offering to make acquisitions of other security technology companies, and list on the Nasdaq Global Market under the symbol “OGAR.”
The deal would have been the second IPO of the year, following last week’s $720 million stock flotation by Mead Johnson Nutrition Co (MJN.N) an offshoot of drug company Bristol Myers Squibb (BMY.N), but instead becomes the 11th IPO in 2009 to be either postponed or canceled. (Reporting by Phil Wahba; Editing by Christian Wiessner)