Wild Market Quiets the Buzz for I.P.O.’s
Wild Market Quiets the Buzz for I.P.O.’s
Evelyn M. Russli and Michael J. De La Merced at New York Times’ Dealbook:
As stocks swing violently, a chill is beginning to settle on the initial public offering market.
A small number of companies have already retreated on their offering plans. WageWorks, an employee benefits provider, pushed its offering, originally scheduled for Friday, to next week and dropped its target price range by as much as 43 percent. Two real estate investment trusts, Orchid Island Capital and Eola Property Trust, have withdrawn their filings. And Old Mutual, a big South African insurance company, said on Friday that it was now unlikely to go public in the United States before the end of next year because of market conditions.
For volatility is the enemy of the I.P.O. market. The ripples could spread, affecting even larger offerings this year, including some hotly awaited Internet offerings, as well as the sales of government-owned shares in companies like the American International Group, General Motors and the lender Ally Financial.
Read the whole article here.
Tough Day on the Street!