TORONTO, March 27 (Reuters) - ATS Automation Tooling Systems (ATA.TO) said on Tuesday it will withdraw the initial public offering of its Photowatt Technologies unit due to unfavorable market conditions.
The company said fourth-quarter solar revenues were below expected levels, due largely to the postponement of two key orders totaling 4 million euros.
“Our primary goal in launching this IPO was to fund an accelerated expansion of Photowatt and generate value for ATS shareholders,” Ron Jutras, ATS president and chief executive, said in a statement.
“Unfortunately, due to market conditions, we were not able to complete an IPO on terms that were acceptable to us.
Jutras said the company would work on developing its solar business, including furthering its strategic initiatives and relationships related to research and development, metallurgical silicon usage and additional long-term silicon supply.
But without the funding expected from the IPO, the company would reevaluate all of the capital needs of the solar group, including the ongoing Spheral Solar development, he said.
Last month ATS began offering 10.9 million shares of Photowatt at a preliminary price of between $15.00 and $17.00 per share. It extended the marketing period earlier this month.