- REUTERS/Afolabi Sotunde
The window for initial public offerings in 2015 may have just closed after two of the biggest initial public offerings to hit Wall Street this year flopped.
Grocery store Albertsons was due to price its offering on Wednesday, but was forced to hold its IPO off after bad news from its rival Walmart spooked investors.
It has now delayed its offering indefinitely, according to a person familiar with the matter.
There is no pricing meeting scheduled for Thursday, according to the person, and it is unclear when the IPO will take place.
Albertsons said in a statement: “Given the recent market volatility, Albertsons Companies has postponed its planned IPO.”
A spokesman for Goldman Sachs, the lead underwriter on the deal, declined to comment.
First Data, a payment technology company, priced its stock at $16 a share on Wednesday, below the anticipated range of $18 to $20 a share. The shares have struggled in early trading Thursday.
Other big brands will take heed of the notion that investors are balking at buying shares of companies without a track record in the public markets.
Some are already pushing back plans: Neiman Marcus recently decided to hold off on its IPO, after filing for the sale in August, in the wake of market volatility, Reuters reported earlier this week.
This is bad news for anyone planning on an exit – such as the private-equity backers of Wednesday’s flops – and for Wall Street too.
As it is, proceeds raised in US IPOs are down more than 44% from last year, and the number of deals is down by about 20%, according to Renaissance Capital.
One more big deal is on the horizon: Ferrari is poised to raise about $900 million in a sale next week.
The payment-processing company Square filed for its IPO on Wednesday, but that filing is preliminary, so the share sale could still be months away.
Another high profile listing expected this year is SoulCycle. No word yet on the timeline for that one.