Tuesday, 27 November 2007
Sato Cancels OMX Listing
"Finnish housing investor and developer Sato said it has cancelled a planned initial public offering on the Helsinki stock exchange, citing the recent market downturn and growing investor uncertainty."
'The market situation has not been favourable to a listing, but we will continue to develop Sato according to the current growth strategy,' said chairman Juha Laaksonen.
"The company had intended to raise up to 100 mln eur in the IPO to help grow its domestic business and expand its start-up operation in St Petersburg."
SATO is a private company providing housing solutions with two business areas: investment in housing, and housing development and construction. Its major owners are Finnish pension insurers, banks and insurance companies, and corporations operating in the wholesale and retail sector and industry.
SATO can't raise the money, why is that? Investors are seeing better opportunities elsewhere.
You just wonder as well why SATO didn't list last year, the timing would have been better. They did it in the wrong possible time, when a credit crisis was abating and housing prices appreciation slowing sharply.