Amadeus could be set to join the list of travel companies to suspend plans for a public listing as investors continue to remain nervous about the wider financial marketplace.
A number of sources close to the Madrid-based travel technology firm confirm that plans to push the company to the marketplace at some point in Q2 2010 are now officially under review.
The timing is being portrayed as purely coincidental, but the news that a review of the public listing strategy is under way comes just a week after Travelport announced its own IPO was on hold.
However, Amadeus considers itself a different business to Travelport with what is says are strengths in emerging markets and activities in pureplay technology outside of the airline GDS business.
Sabre has also recently cooled its interest in entering the public markets after hopes were raised on Wall Street in October 2009 following comments by president and CEO Sam Gilliland.
Amadeus has not publicly acknowledged plans for an IPO, but it was well known that the GDS and technology firm has earmarked its home town of Madrid to list and has appointed Goldman Sachs, JP Morgan Chase and Morgan Stanley to run its affairs ahead of the move.
Unfavourable and prevailing market conditions were cited by Travelport in its about-turn last week – similar reasons, no doubt, for the focus at Amadeus given that jittery investment houses will be nervous at the high value attached to any deal, put at around Euro 8 billion in Q4 2009.
The situation has changed dramatically in just six weeks with what appeared to be five reasonably solid IPOs in the travel and related technology sectors expected to list in 2010.
Amadeus is refusing to comment on any aspect of the IPO, including the latest circumstances involving a review of the strategy.
Related posts:
- Amadeus moving closer to IPO, Madrid likely location for listing
- British Airways and Amadeus close to signing new GDS agreement
- Amadeus-Travelport flirt with merger, but now let’s get serious
- Travelport IPO: Committed to Orbitz, Gordon Wilson CEO-in-waiting, GDSs should join the party
- Sam Gilliland says HEY! Maybe add Sabre to that GDS public offering party
My predictions:
Amadeus & Sabre – No go.
Kayak – Yes. they have all the fundamentals in place for a solid IPO – large industry, proven business model, sector leadership, relatively small staff, lots of new markets to penetrate. Plus a really strong Board of Directors. They are looking a lot like the pretty girl at the prom
ITA – An extremely solid company that still possesses great growth potential. However, they may continue to patiently wait for ideal market conditions. They have been waiting patiently for a long time now – they just may wait a bit longer. As ITA powers Kayak’s air search, if an IPO happens, it would probably follow Kayak’s.