IPO Is a No Go for Pogo
The credit crisis on Wall Street scuttled start-up very light jet air-taxi Pogo Jet’s plans to start selling shares this week on the Nasdaq stock exchange. Yesterday, Pogo decided to postpone today’s planned initial public offering of seven million common shares “due to current market conditions.” The move was not entirely unexpected given the turmoil in the world banking community, but even in the best economic times Pogo’s plans were “highly unusual,” an investment banker who specializes in IPOs told AIN. He said this is because Pogo is essentially a “paper” company; it doesn’t have any airplanes, a Part 135 operating certificate or any tangible assets. In fact, of the estimated $94.6 million Pogo expected from the IPO offering, $39.4 million was to be used for deposits on Eclipse 500s while $11.8 million was scheduled for building maintenance of its operating facilities, according to an SEC filing it made on Friday. The remaining $43.4 million was “to fund operating losses and for working capital and other general corporate purposes.” The company would not comment on when, or if, it will try for another IPO launch. In Friday’s SEC filing, Pogo said it expects to start VLJ air-taxi service in the second quarter of next year.