UFC Parent Company Pulls IPO Day Before Sale
At the start of the week, Endeavor, UFC’s parent company, was hoping for an influx of $600 million coming by way of their first foray into the New York Stock Market.
Now, a day before their IPO was set to be released, the business founded by Ari Emmanuel was been pulled from trading.
The move coming on Thursday night was cited by Endeavor to be due to “market conditions” seeing a disastrous debut of Peloton Interactive, known for their indoor exercise equipment, which dropped 11% on their first day of trading, from $25.76 a share to $3.24 a share.
“Endeavor will continue to evaluate the timing for the proposed offering as market conditions develop,” Endeavor said in a statement.
Prior to the announcement, Endeavor looked to lower not only the number of shares offered from 19.4 million to 15 million, but also lowering the potential stock price from $30-$32 a share to $26-$27 a share, which would raise $405 million, significantly lower than their expected $619 million they had anticipated making when they announced the IPO.
“This is a blow for Ari. It’s definitely damaged his reputation,” said Los Angeles investment banker Lloyd Greif. “It will be interesting to see what happens next… They are going to have to figure out how to access the capital markets.”
Report: LA Times