Intelligent Energy scraps IPO

Intelligent Energy, the fuel cell company that counts the former Social Democrat leader Lord Owen among its directors, confirmed yesterday that it has abandoned plans to float on the London market this month.

Intelligent Energy, the fuel cell company that counts the former Social Democrat leader Lord Owen among its directors, confirmed yesterday that it has abandoned plans to float on the London market this month.

The company was forced to scrap the listing after City institutions balked at the £130m price tag put on the business. Harry Bradbury, the chief executive, said further funds would now be raised through private placement, adding that if flotation was reconsidered in future it might take place in New York, where several other fuel cell businesses are already listed.

"We have concluded that our shareholder interests would not be best served by proceeding with flotation in current market conditions," Mr Bradbury said. The company had intended to raise £60m in a sale of new and existing equity on the Alternative Investment Market this month.

Fuel cells use hydrogen for a chemical reaction that produces electricity. The basic technology is old, but increasing concerns about the pollutants in other fuels have led inventors back to the use of hydrogen as a fuel of the future in both static power generation and transport applications.