NEW YORK (AP) ? Allot Communications Ltd., which provides services for Internet service providers and cable companies, said on Thursday that it was canceling the sale of 5.5 million of its common shares because market conditions were bad.
Shares of Allot had dropped $1.30, or 9.2 percent, to $12.80 on Thursday. Since hitting a high for the year on July 20, they’ve lost a third of their value.
Allot’s pain is part of a decline in the broader market stemming from fears about a slowdown in global growth. The Standard & Poor’s 500 index tumbled nearly 5 percent Thursday, the latest in a string of declines. It is down 12 percent from a high for the year reached on April 29. The Dow Jones industrial average notched its biggest point drop, down almost 513, since October 2008, during the depths of the financial crisis.
Allot had planned to sell 4.5 million shares, and its stockholders were going to sell 965,000 shares. When it said it was planning to sell shares, the stock was worth about 14 percent more than it was by the end of trading Thursday.
The company was planning to use the funds for general corporate purposes.
Allot, which is based in Israel, said the stock sale may still happen later.