German IT firm DEVIL pulls IPO on lack of interest

FRANKFURT, May 14 (Reuters) - German IT hardware and software supplier DEVIL AG pulled its planned initial public offering and said it was reviewing alternative financing options after investors signed up for just half the shares on offer.

DEVIL, whose IPO would have been the first in Deutsche Boerse's (DB1Gn.DE: Quote, Profile, Research) Prime Standard segment this year, said on Wednesday the proceeds would not have been enough for it to execute its planned mergers and acquisitions strategy.

"Despite the current difficult IPO market, interested investors subscribed for approximately half of the offered shares," DEVIL said in a statement.

"However, in the opinion of DEVIL AG's management and shareholders, the resulting proceeds from the issue would not have been sufficient."

DEVIL, part of Dutch Tulip Computers NV (TULN.AS: Quote, Profile, Research), had hoped to raise up to 22.5 million euros ($34.8 million) by selling 2.5 million new shares. It said it might still carry out an IPO at a later date.

Quirin bank had been lead managing the planned IPO.

DEVIL's product range includes components such as graphic cards and memory chips as well as notebooks and printers. It generates 90 percent of its revenue in Germany but wants to expand elsewhere in Europe.

DEVIL posted sales of 321.9 million euros in fiscal 2007, a gain of 5.8 percent year-on-year. Earnings before interest and tax rose to 2 million from 0.7 million. (Reporting by Georgina Prodhan and Eva Kuehnen; editing by Carol Bishopric)