Adult entertainment company Friendfinder Networks is canceling its IPO. The reason: “based on market conditions, it has chosen not to proceed with its planned initial public offering at this time until market conditions improve.” Translation: appetite for its own IPO was less than lukewarm, and the jittery market conditions is a good way out. Considering its earnings picture and what it needed the money for (background here), that isn’t a surprise.
The company filed for an IPO slightly more than a year ago, at that time hoping to raise $460 million in it. In the last month it cut its ambitions in half: it was hoping to sell 20 million shares for $10 to $12, which at midpoint would have raised about $220 million. And according to reports, it was having trouble raising even that amount: it had managed to raise $105 million by Wednesday night, according to AP, by selling 15 million shares for $7 apiece.