Czech security software maker AVG Technologies, which is backed by buyout shop Enterprise Investors, has shelved plans for an IPO, Reuters reported. The company, which makes free anti-virus software, will instead attempt to raise as much as $300 million in a bond issue, Reuters reported.
(Reuters) Czech security software maker AVG Technologies has shelved plans for an initial public offering (IPO) and will instead seek to raise up to $300 million in a bond issue, its largest shareholder told Reuters on Wednesday.
AVG, the maker of a free anti-virus programme that competes with rivals such as McAfee and Symantec , had planned a flotation worth up to 800 million euros ($1.1 billion).
“At this moment, when it comes to the bourse, we decided that it is worth waiting and instead gain funds from the debt market,” said Dariusz Pronczuk, managing director at Enterprise Investors, a private equity fund that holds 34 percent of AVG.
He said AVG would likely sell its bonds in the U.S. market in February or March and had already gained the required ratings from Moody’s and S&P.
Sources close to the discussions told Reuters the IPO was delayed because of disagreements among shareholders, who instead decided to sell bonds and later make a large dividend payout.
Pronczuk said a future flotation was still on the cards. (Reporting by Agnieszka Barteczko and Piotr Bujnicki; Writing by Chris Borowski; Editing by Dan Lalor) ($1 = 0.7327 euro)