|Wall Street analysts are predicting low returns for those companies launching IPO’s- Initial Public Offerings- this month. Thomson Financial, based in New York, revealed that seven companies cancelled their IPO’s last week, when faced with the likelihood of disappointing values in a month where most investors turn their back on this activity. The figure of seven withdrawals in a week, is the highest cancellation rate since April 2001, and doesn’t bode well for the sixteen companies with August IPO’s scheduled.|
One of these companies is the California based search engine google- a company, which despite their refusal to allow advertising listing for online gambling sites, has been generating much interest on Betfair as to whether their shares will rise or fall following the IPO. Although the odds offered have been largely in favour of a rise, financial analysts have been predicting the opposite- a bet that now seems supported by this latest analysis offered from Wall Street.
Another company planning an August IPO is parent company of the World Poker Tour, WPT Enterprises Inc. Their IPO is scheduled for this week, with US$4 million in shares being offered, with the estimated price to be between US$5 and US$7 per share.