Cheapflights scraps IPO plans due to stock market volatility

Business News IN BRIEF

*The online travel comparison group Cheapflights has scrapped plans for a float in a stock market shaken by the credit crunch. The firm has been looking at a stock market debut since hiring a bank to explore a possible initial public offering (IPO) last May, as well as possible stake sales to private equity or strategic investors. Cheapflights announced its interest in an IPO in the run-up to the listing of the price comparison website Moneysupermarket.com last July, which had been expected to fetch more than 1bn. But the financial crisis has sparked heightened market volatility, and Cheapflights said yesterday that its existing shareholders had decided to abandon plans, blaming price and market conditions. John Clare, non-executive chairman, said: "We have decided to conclude our process for the time being. Our investors remain strongly committed to the business."

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