Kryocor puts IPO on hold

Melbourne-based tissue engineering group Kryocor, which planned to close its IPO on March 31 and list on the ASX on April 14, has postponed its float and is considering its options.

"The IPO is pretty much being held in abeyance," said Krycor's managing director Hugh McCormack.

McCormack said that a fundamental requirement of listing on the ASX was that the company receive sufficient subscriptions within the allowed time frame.

"There were a number of factors inside there," he said. "Because we couldn't complete the offer as stated, we have to go back and lodge a supplementary at the appropriate time, and then accept further applications."

The timing, conditions and format of that has not yet been determined by the board, he said.

"We're considering what our options are and the board is reserving its position as to how it will go forward," said McCormack.

Market a key factor

The market played a critical role in Kryocor putting its IPO on hold.

Within a couple of days of Kryocor opening its offer, the market lost some 300 points, said McCormack.

"If you have a look at the All Ordinaries Index over the past year, you'll see a nice big hole in it, which was approximately April this year," said McCormack. "So we didn't get the market response we required at that stage. Now it's a question of picking the right time to see whether there's another opportunity for us to approach the market."

In its prospectus, Kryocor revealed plans to raise AUD$5.5 million by offering 27.5 million shares at an issue price of $0.20, with one-for-one attaching options exercisable on or before September 30, 2006. The offer was not underwritten by lead and sponsoring broker Tolhurst Noall.

The company, which has been spun out of devices manufacturer Bio Nova, is commercialising collagen-based implantable medical devices. Its first product is replacement blood vessel Flonova, which is fully developed and TGA-registered.