This article has been updated from a previous version.
NEW YORK, March 7 – Closely following its decision to lay off nearly 10 percent of its staff, bioinformatics company DoubleTwist filed Wednesday with the Securities and Exchange Commission to withdraw its initial public offering.
“In light of current market conditions, we believe it is in the best interest of our shareholders to withdraw our registration statement for a public offering at this time,” said DoubleTwist spokeswoman Nicole Litchfield.
DoubleTwist intends to fund its operations through increased sales and to augment its cash flow with additional sources of financing as needed. “As a well-capitalized private company, we are optimistic about the long-term outlook for our business and the growing market for our products,” Litchfield said.
According to DoubleTwist’s amended S-1 filed November 9, the company’s cash, cash equivalents, and marketable securities were $24.1 million as of September 30.
DoubleTwist anticipated offering 5.75 million common shares priced at $13-$15, for a proposed offering price of $86.3 million.
For the last nine months of 2000, the last period for which information is available, DoubleTwist’s revenues totaled $4.8 million.
“We will continue to assess the markets and will make a decision regarding the appropriate timing for a public offering as conditions permit,” Litchfield said. “In the meantime, we look forward to ending a long registration ‘quiet period’ and focusing on promoting developments in our business.”
Litchfield said Tuesday that the company did not plan further layoffs.
A number of companies have delayed or withdrawn IPOs over the past several months due to the recent market downturn. Most recently, Genometrix of The Woodlands, Texas, withdrew its offering on February 26 citing volatile market conditions.