Mexican cable network operator Cablemás has postponed its initial public offering (IPO) due to low demand for the shares, according to Bloomberg quoting a banker involved in the transaction. The company was looking to sell shares to the public for the first time to help reduce debt. The preliminary prospectus for the sale did not provide details on the amount of shares to be sold or an estimated price, but Cablemás was reported to be looking to raise USD247 million from the sale.
Established in 1985, Cablemás is the second largest cable TV operator in Mexico and a major provider of broadband internet services via cable modem. It launched broadband services under the ‘Cablered’ banner in 1999 and claims it has the widest cable network coverage in the country, operating in 46 cities as of December 2005. Mexico’s Alvarez family owns 47.3% of the company´s shares and 51% of voting shares, while Olmeca Investments owns 31.2%, Citicorp International Finance Corp owns 17.4%, and Nautilus owns 4.1%.