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My previous employer delayed its IPO twice. The first was because its revenue stream was undiversified (2008), and the second was because the markets were in tu
by hkmurakami 13y ago
My previous employer delayed its IPO twice. The first was because its revenue stream was undiversified (2008), and the second was because the markets were in turmoil (2011 summer -- US debt ceiling crisis when the markets slid 15%).
We ended up IPOing later in 2011 when the markets stabilized somewhat, and the company is now valued at $2BB.
This will come to pass.
- this_user 13y agoLately, the ratio of companies that currently are losing money that IPO to IPOs has been extremely high which is generally a sign of a market the is overheated and investors that are too optimistic which is not a good sign going forward. On the other hand, a lot of the high-flying (and arguably overpriced) tech stocks have sold off by a big margin since the beginning of the year. Quite a few are down 20% or more. The overall market vulnerable while the period from May to November is seasonally weak too and the Federal Reserve continues tapering its bond purchases that have propped up the market for the last couple of years. However, a lot of those money losing stocks that are going to need to raise more cash in the foreseeable future. If we see a bigger flush during the summer as we saw in 2011 and 2010, it would give them the opportunity to do secondary offerings at attractive valuations that should attract enough interest to meet their financial needs.