Another initial public offering (IPO) has been put on hold amid a lack of investor enthusiasm.
In a last-minute decision, Endeavour Group Holdings Inc. called off its $405 million U.S. IPO late Thursday evening, hours before the stock was to begin trading.
The entertainment conglomerate -- run by media mogul Ari Emanuel -- decided to postpone the stock sale after an IPO flop by Peloton Interactive Inc. on Thursday. Endeavour’s offering now won’t happen until 2020 at the earliest, according to the company. Endeavour had already reduced the size and price before ultimately deciding to pull the listing altogether.
The move is the latest sign that the IPO market is souring. Peloton, the marker of high-end fitness bikes, fell as much as 15% below its IPO price on their first day of trading Thursday. Earlier this month, WeWork, a co-working space start-up, had to put its IPO on hold when potential investors balked at the valuation.
Ride-sharing companies Uber Technologies Inc. and Lyft Inc. also had lackluster showings when they went public in the first half of this year, which set a somber tone for other private companies looking to test financial markets.
Endeavour had been trying to sell its shares right until it decided to pull the IPO Thursday night. Its bankers and executives had been monitoring the rocky performance of Peloton throughout the day Thursday and felt that market conditions were too uncertain to hold a successful stock market debut.
Peloton was the third-worst U.S. IPO in 10 years for companies that raised at least $1 billion U.S., according to data compiled by Bloomberg.
