Volatile Market, Worries Investors and Hits the IPO Ambition of Companies
The volatility in the market is keeping the investors on guard and that's giving the companied a jitter to offer their IPO.
Recently, First Data Corp. offered its IPO and raised lesser than it had expected from its offering. Looking at the investor mood, Albertsons Cos. postponed its IPO on Wednesday, at the time when the market is volatile. The conditions lingering in the market are keeping the pricing ambitions of the companies under check.
The third quarter was rather modest both in the total number of companies in the U.S going public and the amount of money raised, which touched the three year lows. However, earlier the sizable offerings from First Data and Albertsons hint at a likely upturn in the three remaining months of the ongoing year. That might not be the case anymore as Digicel Group Ltd., the mobile-phone network provider owned by Denis O'Brien, the Irish billionaire, last week canceled its sale of initial shares. The company also citing the current volatility in equity markets for its decision.
First Data reduced the pricing of its shares by $2 than the low end, which it had proposed in earlier.