Oceanlinx waves off IPO, but may return in 2 years

LONDON, Jan 28 (Reuters) - Wave power firm Oceanlinx, which had planned to float in London before the credit crunch hit, is confident it can raise enough money privately to keep it going for two years, when it may look again to the market, a source said.

A handful of investors are willing to take large stakes in the group in a private fundraising, a source close to Oceanlinx said on Monday, after it shelved a public listing that would have meant other smaller investors stepping on board.

Oceanlinx, which has made a prototype unit that sits in the sea off Australia and harnesses wave power, had been trying to list and raise 25 million pounds ($50 million) to 35 million.

A private fundraising is seen as reducing the short-term risks for Oceanlinx's investors, who want it to float on the market once it has built more devices and has a longer financial track record, the source said.

The investors believe it could return to the market, possibly once again to London's junior Alternative Investment Market, with a higher valuation in 18 months to two years' time.

The investors are happy to provide Oceanlinx enough money to keep operating until that time, the source said.

The company hopes to install its wave power units in Hawaii and Rhode Island in the United States, in Namibia, in an additional site off Australia and at Cornwall's Wave Hub in the next two years. (Reporting by Chris Wills; Editing by David Holmes) (chris.wills@reuters.com; 0044 (0)20 7542 5331; Reuters Messaging: chris.wills.reuters.com@reuters.net)) ($1=.5043 Pound)