Yes TV says no to flotation - again

TV portal and video-on-demand company Yes TV has postponed its initial public offering for the second time, blaming adverse market conditions in the technology, media and telecoms sectors.

The hiccup, which follows a postponement in April, is being attributed to the market's aggressive stance against technology companies. Close to 15 per cent of value was wiped off the FTSE Techmark 100 - an index of small and medium-sized technology stocks - in the aftermath of e-tailer Boo.com's slide into liquidation last Wednesday.

Despite cutting the offer price by 30 per cent last week, Yes's flotation plans have been left beached by pull-outs from nervous institutional investors. Concurrent plans by Warner Brothers and Walt Disney's Buena Vista to take 10 per cent and nine per cent stakes respectively have also been put on hold.

Steve Garvey, head of marketing at Yes, said: "Throughout this entire process we have been marketing into a savage bear market - and we just got clobbered.

"I challenge anyone to get another high-technology flotation out there at the moment."

The flotation would have valued Yes at £560m and raised £134m for the development of the company's UK and international services.

Currently, Yes has hundreds rather than millions of viewers through two pilot schemes, but is planning a nationwide roll out of the service with BT this autumn. The company also has deals with independent film distributor u>direct, BBC Worldwide and Trans World International on its books.

Meanwhile, internet bank Egg plans to press ahead with its flotation. Founder and chief executive Mike Harris has given the plans the go-ahead partly so that share options can be offered to in-demand key personnel. As much as 10 per cent of the £1bn plus offer will be set aside for some 100 staff.