IPOs struggle in tough market

IPOs have been particularly hit by the volatile market, with some investors shunning highly estimated new stocks, according to an interesting story on the Financial Times' Web site.

IPOs have been particularly hit by the volatile market, with some investors shunning highly estimated new stocks, according to an interesting story on the Financial Times' Web site. The past week has reportedly seen several IPOs scaled back or priced lower than expected, including Ironwood Pharmaceuticals, which debuted its new stock offering at $11.25 per share last week, below its original estimation of $15-$17.

Some companies are shelving or postponing their IPO plans altogether, including Florida-based Web operator FriendFinder.com and Los Angeles-based Imperial Capital.

From FT:

David Wilkinson at Ernst & Young said the recent market falls meant companies could not expect to achieve aggressive valuations and “conditions could become more difficult for IPOs”....Tom Troubridge, head of capital markets at PwC said: “It is a buyers' market and investors can afford to be picky.

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