ECI Telecom Postpones London IPO

Israel-based telecommunications equipment supplier ECI Telecom Ltd. has postponed a planned London Stock Exchange IPO, according to one person familiar with the matter who spoke to Calcalist on condition of anonymity. The decision to delay the listing was influenced by the weakening markets and was made after consultation with bookrunners Barclays PLC and UBS Group AG, that person said.

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In September, ECI announced that its IPO registration documents had been approved by the U.K. watchdog, the Financial Conduct Authority (FCA). Calcalist first reported that ECI was planning a London IPO in July, citing a person familiar with the matter.

ECI sought to raise around $230 million in new and existing shares, according to the company’s registration documents.

Founded in 1961, ECI was considered an industry leader in the 1990s, employing around 6,000 people and boasting a market capitalization of as much as $4 billion. Since, diminishing revenues led the company to sell or spin off some of its subsidiaries. In December 2017 the company announced it will let go 100 of its Israeli employees, citing the burden of global competition, a decline in governmental support, and the strong Israeli currency as the reasons for the decision.