International telecoms firm Digicel has ditched a public offering of shares expected to raise as much as $2 billion.

The firm said that volatility in equity markets was behind the decision to drop the initial public offering (IPO) due to price today.

Irish billionaire Denis O’Brien, the chairman of Digicel, said: “Given our growth outlook, an IPO for Digicel was optional and predicated on receiving fair value for the company.

“Recent volatility in equity markets has seen a number of IPOs listing at a discount to their signalled price range and this was a less attractive route for us.”

Mr O’Brien added that Digicel had invested $1.5 billion in the company over the last three years and generated “strong and growing” free cash flow, while no debts were due to mature until 2012.

And he said that the firm’s growth plans were unchanged and that Digicel planned to exploit markets in data, business solutions, cable TV and broadband.

The company had planned to sell 124 million shares for $13 to $16 each, according to filings.

But Mr O’Brien would have retained 94 per cent voting control even after the IPO.