3 JULY 2002
By Kurt Sansone
Despite a very successful bond issue that closed within hours of opening, the Mizzi Organisation has no plans of going public in the immediate future as the market conditions are not right for an IPO.
Maurice F. Mizzi, talking to The Malta Financial and Business Times in todays interview did not rule out the possibility of the organisation eventually going public but he insisted that the market is currently depressed and thus unsuitable for an IPO.
Mr Mizzi added, "We are a modern company and we would take what we think are the right decisions at the right time. Mizzi Organisation is alive and we respond to market changes in a fast way."
Asked to comment about the perception that a cash flow crisis does exist when at the same time millions are being invested in various bond issues, Mr Mizzi remarked that there seems to be a lot of money around.
"The man in the street has the money but some companies are over stretched giving the impression that the economy is not performing," he said. Mr Mizzi pointed out that the main problem is that there are too many businesses competing in the same field.
"It is a Maltese syndrome by which everybody follows the leader thus creating over saturation," Mr Mizzi told this newspaper adding that the problem is further aggravated by the smallness of the market.
Mr Mizzi explained that the market is very cautious and people are looking more after their investments but are spending less.
Although the banks have been partially blamed for the credit crunch, Mr Mizzi argued that the new banking policies are based on international standards and have served as an educational experience for the Maltese businessman.
"The banks have internationalised their policies and when they see a problem they prefer to close down a company rather than pump in more cash to keep it afloat," Mr Mizzi said. The entrepreneur stressed that the new banking policies came as a shock for businessmen who did not know what they are doing.