Masergy Communications Inc., the provider of network services to businesses, postponed its $108 million initial public offering.
The Plano, Texas-based company had planned to offer 7.7 million shares at $12 to $14 apiece, according to an earlier filing with the Securities and Exchange Commission. Masergy Communications intended to use the proceeds for general corporate purposes.
“Masergy has decided not to proceed at this time,” Executive Chairman Royce Holland said today in a statement. “Our stockholders remain committed to the company and have decided to maintain their ownership rather than sell,” he said.
Nine companies raised less than expected this month in initial share sales even as the Standard & Poor’s 500 Index reached its highest level since June 2008. At least 13 U.S. IPOs have been withdrawn or postponed this year, while Kinder Morgan Inc., the energy-pipeline company taken private in 2007, had the biggest U.S. IPO backed by private equity firms, data compiled by Bloomberg show.
“There’s been some good demand for some larger deals, but there’s really not much in the pipeline,” said Darren Fabric, Chicago-based managing director at IPOX Capital Management LLC, which oversees $3 billion. “It’s unusual for us to see such great market conditions and people not getting IPOs priced.”
Univar Inc., the Redmond, Washington-based chemicals distributor, withdrew its $863 million IPO today, data compiled by Bloomberg show. Iaso Pharma Inc., the San Diego-based developer of treatments for bacterial and fungal infections, postponed its initial offering on Feb. 14 after attempting to raise $22 million, the data show.
The Feb. 1 offerings by NeoPhotonics Corp., the maker of circuits for high-speed communications networks, and Epocrates Inc., the provider of medical reference software, are the best- performing U.S. IPOs this year.
NeoPhotonics surged 66 percent through yesterday’s close on the New York Stock Exchange after the San Jose, California-based company raised $95 million in its initial offering. Epocrates of San Mateo, California, jumped 38 percent on the Nasdaq Stock Market since completing its $86 million IPO.
Houston-based Kinder Morgan expanded this week its Feb. 10 initial offering to $3.3 billion as underwriters led by Goldman Sachs Group Inc. of New York and London-based Barclays Plc exercised an overallotment option to buy more shares, Bloomberg data show.
Owners including Carlyle Group of Washington and New York- based Highstar Capital LP raised $2.9 billion, 23 percent more than they sought, in Kinder Morgan’s offering before the overallotment option, selling more shares to meet demand, according to a company statement.
Kinder Morgan’s sale surpassed last month’s $1.9 billion sale by Nielsen Holdings NV to become the biggest private equity-backed IPO on record. The New York-based television- audience ratings company also raised more than it sought, signaling the S&P 500’s rally is increasing demand for sales of debt-fueled acquisitions completed as credit markets started to freeze four years ago.
In leveraged buyouts, private equity firms pool money from investors to buy companies, financing the purchases mostly with debt, with the intention of selling them later for a profit. Shares of private equity-owned companies last year gained an average of 3.8 percent in the first month of trading following their U.S. initial sales, less than half the 8.1 percent advance by all other U.S. IPOs, the data show.
AcelRx Pharmaceuticals Inc. the Redwood City, California- based developer of treatment therapies for post-operative pain, on Feb. 10 raised $40 million in its IPO, half of what it originally sought, according to data compiled by Bloomberg.
Imperial Holdings Inc., the Boca Raton, Florida-based provider of insurance premium financing, slashed the price of its shares by as much as 33 percent before completing its $179 million IPO on Feb. 8, the data show.
Zuoan Fashion Ltd., a Shanghai-based casual menswear retailer, cut the size of its offering by as much as 51 percent before raising $42 million selling 6 million American depositary receipts for $7 each on Feb. 14, according to Bloomberg data.