It only took two days for five companies to pull the plug on their initial public offerings this week. What promised to be an action-packed few days for the IPO market – with a dozen companies scheduled to debut – has ended up as a bit of a damp squib. Market conditions are cited as the culprit.
Cathay Industrial Biotech, Enduro Royalty Trust, TIMWE, InvenSense and HomeStreet have postponed their offerings. WageWorks, Carbonite and Loyalty Alliance are supposed to price tonight, with WhiteGlove, Midland States Bancorp, Trustwave Holdings and SandRidge Permian Trust coming later in the week.
For the seven still on the IPO calendar, there are risks beyond broader market conditions – four are either not profitable or very small (with revenue of less than $60 mn).
Source: Renaissance Capital