Jungle.com delays flotation

Online reseller Jungle.com has put off its stock market listing, citing unfavourable market conditions.

Online reseller Jungle.com has put off its stock market listing, citing unfavourable market conditions.

An icy reception has met internet flotations in recent months since the very public failure of online sports retailer Boo.com in May. Since then, share prices have fallen at other dotcoms such as Lastminute and QXL.

Steve Bennett, Jungle's chief executive, denied the company had shelved plans altogether, saying it will be ready to react quickly once the market outlook is more favourable. "We [were] ready to float before Lastminute [which launched in March]; the lawyers and banks are all in position," he said.

But Bennett also confirmed that, when it is launched, he expects the company to be valued significantly below the previously suggested figure of £700m.

Caroline Worth, a representative at Jungle rival Evesham.com, backed its competitor's decision. "Dotcoms are damned by association right now," she said. "Bennett isn't the most patient of men. He wants to maximise his profit. The decision to float can sometimes be for the ego rather than a reason to finance."

Worth confirmed that Evesham is looking at the possibility of a flotation but that it is still at an early stage. "It's an option we are strongly considering," she said.

Like Jungle, fellow competitor Dabs.com has also been a victim of stating its flotation strategy prematurely, but it is now looking to step up its plans.

"People have known about our decision for over a year now but we only appointed PricewaterhouseCoopers to handle the move last week," said a Dabs representative. "Timing is crucial. We will be looking to float by either the end of this year or early next, but I think everyone will be following Jungle's lead closely."

First published in Computer Reseller News