Dash to unblock Dyno-Rod float

A FRANTIC last- minute scramble was taking place today to prevent the eagerly awaited stock market listing of Dyno-Rod from going down the drain.

The float of the franchised drain cleaning group, known for its bright orange vans, has come to a standstill as prospective buyers have been unable to find enough cash.

It is believed a consortium of new owners, including former British Gas services director Kevin Mahoney, cannot meet the £60.5m asking price.

The buyers had planned to raise £47.5m from a share placing and then list the group on the Alternative Investment Market. They had been expected to complete the deal yesterday.

Seymour Pierce, the investment bank representing Dyno-Group, the management buying team's vehicle, was expected to clarify the position today.

The deal would make a small fortune for Dyno-Rod founder Jim Zockoll, the former Pan Am pilot. He set up the business in 1963 and it now employs 180 staff and generates £56m revenue a year.

After a buoyant start to the year, the Initial Public Offering market has run out of steam. Sauces-to-pickles group Premier Foods and Virgin Mobile were both forced to cut their price before listing earlier this summer.

But only Intelligent Energy, the fuel cell company that counts Lord Owen among its directors, has scrapped a planned float this year.

One trader said: 'The IPO market has certainly come off again in the last couple of months.'