Hearing-care services provider Hear.com NV has postponed its initial public offering due to the choppy stock market, according to people familiar with the matter, the latest company to delay its IPO.
Hear.com was set to price its offering Thursday afternoon and start trading Friday morning. Its timeline is now in flux, the people said. On Wednesday, private mortgage-insurance company Enact Holdings Inc. decided to delay its IPO. The company said Thursday that recent market volatility meant that “current market pricing for the planned offering does not accurately reflect Enact’s value.”
The stock market, while still up for the year, has fallen sharply this week. The S&P 500 dropped 4% in the first three days of the week, its steepest three-day decline in seven months, though the index rebounded by roughly 1% on Thursday. Companies generally prefer to make their public-market debuts into a rising—or at least not volatile—stock-market environment.
Both Hear.com and Enact Holdings launched their roadshow pitches to investors last week. Hear.com was seeking to raise about $300 million in the public market at the midpoint of its targeted price range, while Enact, a spinoff of
Genworth Financial Inc.,
was looking to raise roughly $500 million, according to regulatory filings.
The decisions to postpone the offerings come as the U.S. IPO market, which has been hot for nearly a year, is showing some signs of cooling.
Companies raced to the U.S. public markets last year despite the Covid-19 pandemic, raising a record $167 billion, according to Dealogic. The frenetic pace of fundraising showed no signs of slowing in early 2021, with companies having raised roughly $158 billion already, according to Dealogic. Large, buzzy companies including dating-app maker
and cryptocurrency company
Coinbase Global Inc.
are among those tapping the market this year.
But in recent weeks, those stocks have struggled as investors moved out of fast-growing companies in favor of value stocks, which typically don’t grow as quickly and trade at a low multiple of their book value.
On average, 2021 U.S.-listed IPOs, not including blank-check companies, are up 6.4% from their IPO prices through Wednesday’s close, according to Dealogic. This year through Wednesday’s close, the S&P 500 rose 8.2% while the tech-laden Nasdaq Composite had risen 1.1%.
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