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The
move by RainDance, which filed for an IPO of up to $60 million
in February, comes on the day of a sell-off in global equities
following a slump in Chinese stocks.
Other companies that have decided against going public this year
include Expro Oilfield Services, S1 BioPharma and casual dining
chain J Alexander's LLC.
"With last week's mayhem and today's drop you can expect IPO
activity to grind to a complete halt," said Jay Ritter, IPO
expert and professor at the University of Florida. "The IPO
market is always hyper sensitive to market movements; and you
can expect it to dry up when it falls."
It was not clear from RainDance's filing with the U.S.
Securities and Exchange Commission if the company would consider
an IPO again. (http://1.usa.gov/1JNS5zq)
Companies may consider repricing their offering in current
market conditions if they don't want to pull back their listing
plans, said Francis Gaskins, president of research firm IPO
Desktop Premium.
There are no companies expected to make their U.S. debut next
week, IPOScoop.com reported on Monday.
Massachusetts-based RainDance, whose top investors include GE
Ventures, Acadia Woods Partners, Quaker BioVentures and
Northgate Capital, had planned to list on the Nasdaq under the
symbol "RAIN."
The company's revenue almost doubled to $30.6 million in 2014.
RainDance said in its SEC filing that it had a small customer
base and the loss of one or more customers could severely hurt
its business.
Its largest customer is Myriad Genetics Inc, which accounted for
more than half of the company's revenue in 2014.
RainDance executives were not available for comment.
Bank of America Merrill Lynch, Evercore ISI and Cowen & Co were
among the underwriters for the IPO.
(Editing by Savio D'Souza and Kirti Pandey)
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