IPOs Are Dropping Like Flies

Market slump leads to 10-year high in canceled issues
By Jim O'Neill,  Newser User
Posted Jan 28, 2008 12:40 PM CST
Tommy Hilfiger speaks to reporters before his 2008 spring/summer collection is modeled during Fashion Week in New York, Wednesday, Sept. 12, 2007. (AP Photo/Seth Wenig)   (Associated Press)
camera-icon View 2 more images

(Newser) – The subprime flu that’s laid low Wall Street has infected another victim: IPOs. Because of market volatility, 24 IPOs have been shelved this month—the most in a decade, Bloomberg reports. Tommy Hilfiger Corp. highlights a roster of firms that postponed or canceled going public. The largest was Imperium Renewable, a biodiesel producer that says it abandoned its $345 million sale because of “unfavorable market conditions.''

"Unless we have a fairly dramatic shift, the IPO market is going to be pretty dormant,'' said an investment attorney. "Investors don't want to buy into an investment that has a decent likelihood of going down.'' Bloomberg’s IPO Index says first-year stocks dropped 9% last year, compared to the S&P 500’s 6.4% decline.