Advanced Thermal Sciences Inc., which makes temperature-control systems for chip makers, withdrew its plan to go public in a market that has cooled toward new issues and semiconductor stocks.
The Anaheim unit of B/E Aerospace Inc. had expected to raise up to $44 million when it announced its initial public offering in August under the name Advanced Thermal Technologies Inc.
The unit said in a document filed with the Securities and Exchange Commission that it withdrew its plan because of "changed circumstances in the securities markets."
IPO markets have shown little investor demand this year, with only 45 companies completing offerings so far, compared with 212 in the first half of 2000.
"Significant weakness" in stocks of others in the industry, with some down 50% or more, also led the unit and its parent to scrap the offering, said B/E Aerospace spokesman Max Kuniansky. "When conditions in this sector of the market improve, we may decide to revive the IPO."
Advanced Thermal "is still a good company with a good, state-of-the-art product," Kuniansky said. Its cooling technology was derived from B/E Aerospace's food refrigeration systems for airplanes. Advanced Thermal makes enough money on its own to expand its business, he said.
"It was not a transaction we had to do. It was a transaction we wanted to do to unlock some value that wasn't being recognized" by investors, Kuniansky said.
B/E Aerospace, based in Wellington, Fla., makes seats and other systems for aircraft cabins.
Its stock has gained 40% since Advanced Thermal filed to go public. The stock fell $1.10 Thursday to close at $19.49 a share on Nasdaq.