Smartstream, which is currently 80% owned by private equity firm TA Associates and 20% by management, said last month that it hoped to raise £70-£100 million in an IPO, giving the vendor a market capitalisation in the range of £250-£300 million.

Trading was supposed to have started on Friday, but in a statement to the stock exchange today SmartStream says it is postponing its IPO until further notice "due to current market conditions".

But SmartStream maintains that its "strategy and immediate plans are not affected by this decision".

According to a Financial Times report SmartStream has been pressured by institutions to reduce the price of its offer further. The London-based firm has already been forced to cut the price of the offering from £300m to around £200m.

The FT report, which cites a source close to the company, says although demand has been "good", there also been some suggestion that the offering is not at a price that reflects "fair value" for the company.

SmartStream, which is exhibiting at the Swift international conference in Boston this week, declined to comment further on its future plans.