Lack Of Investor Interest Kills Enron Spinoff IPO

The IPO market is looking grimmer by the day.

Energy company AEI cancelled its initial public offering due to price expectations. The deal was called off last night after the market closed with AEI citing “market conditions” as the catalyst:

SFGate: AEI, a former Enron entity with energy-infrastructure operations in 19 developing countries, had expected shares to price between $14 and $16 per share. The company was offering 16.7 million shares. Its largest shareholder, Ashmore Funds, planned to sell 33.3 million.

Thursday, AEI lowered its expected price range to $12 to $13 per share. It raised its offering to 20 million shares, while Ashmore Funds cut its offering to just 1 million shares.

But even that price was too much. Now the entire thing is off.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.