The IPO Window Is Closing Fast

Tyler Durden's picture

With a multitude of equity valuation dreams hinging on the success of Alibaba's forthcoming IPO, the following chart is likely the most frightening one for many VC companies currently. As Bloomberg notes, it's becoming much harder for companies to close IPOs successfully with only 2 companies last week raising money at an amount within the expected range. On average,  the eight companies from last week priced their offerings 12% below the mid-point of their range. As one analyst noted, "investors have more or less said "enough"."

 

As Bloomberg notes,

while 167 companies are still on tap to raise $12 billion through U.S. IPOs, the calendar for the rest of April looks bare with only two issuers seeking less than $100 million combined, data compiled by Bloomberg show.

 

That doesn’t include Alibaba Group Holding Ltd...