Is Facebook Sucking Oxygen Out of the IPO Market?

As Facebook increases the size and price range of its initial public offering, the rest of the IPO market is starting to sputter. According to data compiled by Bloomberg, there’s been an uptick in the number of companies that have either withdrawn or postponed their IPO in the past three months. Since mid-February, 29 IPOs have been shelved, a 38 percent increase over the same period last year.

Is the mother of all tech IPOs sucking oxygen out of the capital markets and crowding out investment? Possibly, though the more likely culprit appears to be the sagging stock market. No one wants to make their public debut amid falling prices. As the S&P 500 has shed 6 percent since early April, companies of all stripes have put the brakes on plans to go public, with most of them citing “adverse market conditions.”