DigitalNet IPO Pulled

Underwriters decide market conditions aren't favorable.
By TSC Staff ,

One of the most-anticipated (and only) technology IPOs of the year was pulled at the last minute after underwriters decided market conditions weren't favorable.

DigitalNet

, a government IT contractor, was supposed to price about 6.25 million shares at $14 to $16 through underwriters led by Citigroup and Bank of America Tuesday night. The offering would have been the first by any U.S. company in more than two months. Another tech company, credit card processor

iPayment

, is still set to price for a Friday open.

Both companies are losing money and one published report said customer-retention concerns might have had a role in last-minute institutional aversion to the DigitalNet deal.

The postponement is bad news for the hamstrung IPO market, where about 20 deals worth about $3.6 billion are currently registered and waiting for a green light for underwriters.

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