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Internet Initiative Japan Pulls Stock Offering

TSC Staff

U.S. investors certainly didn't like the news from abroad that Internet Initiative Japan (IIJI Quote) delivered Friday.

In a brief statement, the company said it expects to terminate a planned stock offering in Japan and withdraw its listing application to the Tokyo exchange early next week. Internet Initiative said it will seek a domestic listing in Japan at a future date.

The reason appeared to be a lack of interest. The Tokyo-based Internet services provider said that at the end of the subscription period for its proposed Japan offering, fewer than 300 prospective new investors had submitted purchase orders.

As a result, the company won't fulfill the listing requirements of the Mothers Market of the Tokyo Stock Exchange. Shares of Internet Initiative were diving $2.67, or 25%, to $8.03 in premarket trading.

TheStreet.com profiled Internet Initiative and took a look at its stock offering plan on Thursday.