Two major retailers delay IPOs
Retailers planning initial public offerings have recently postponed their plans in light of stock market volatility and plunging share prices of Wal-Mart Stores Inc. and other retailers.
Albertsons delayed its plans to sell stock late Wednesday.
And Neiman Marcus Group Inc. earlier this week also delayed its IPO after filing for a U.S. listing in August.
You live by the stock market, you die by the stock market.
These delays in public stock offerings show the stark contrast between the successful year last year for IPOs compared to this year. U.S. IPOs had raised some $30 billion through last week, compared to 2014’s $81 billion by the same point, according to Dealogic, the Wall Street Journal reports.
Albertsons was hoping to raise significant cash to help improve its stores and make other improvements in the competitive grocery business. And Neiman Marcus’ delay points up the struggles faced in the luxury sector as the strong dollar has discouraged wealthier foreign shoppers from spending.
Both companies could enter the stock market if there’s a rally, but for now they’re in wait-and-see mode, according to sources close to both retailers.
- Wall Street Journal Albertsons’ Delayed IPO Marks Setback for Kroger Rival
- Wall Street Journal Neiman Marcus Delays IPO
Follow Daphne Howland on Twitter