Israeli semiconductor developer Passave has postponed its initial public offering on Nasdaq
due to legal proceedings, making it the second Israeli company in as many weeks to delay or cancel a listing on the US exchange.
Passave was supposed to have carried out its IPO this week and was in the middle of a road show, a source close to the situation said on Monday. The company hoped to solve what the source called "a legal technical problem" in the coming weeks and proceed with the listing.
"There is a good chance that the IPO will happen by the end of the year," the source said.
In a filing two weeks ago, the Herzliya Pituah-based company said it planned to raise about $68 million at a market capitalization of $185m.-$209m. It was to offer 4.7 million shares at $15-$17 each with an overallotment option of 705,000 shares. The source said that when the IPO did go ahead, the conditions would be broadly the same, but would ultimately depend on the market.
The company develops "system-on-a-chip" technology for telecommunications networks, enabling service providers to offer voice, video and high-speed Internet access, or "triple-play" services, over optical networks. Founded in 2001, it now has over 120 employees, including 88 in research and development, 20 in sales and marketing and 18 in general and administration.
Passave isn't the only company to have run into problems with a US IPO recently. At the end of last month, Ramat Gan-based Predix Pharmaceuticals withdrew its filing to list on Nasdaq, citing "unfavorable market conditions." The company was planning to raise about $50m.