Fender Pulls It’s IPO…Did They Just Hit A Sour Note?
Fender has just pulled it’s IPO.
Fender Musical Instruments dropped plans of going public citing uncertain market for decision. Fender CEO Larry Thomas blames current market conditions and that the economic woes of Europe wouldn’t support the IPO value of the company.
At the time of filing, Fender’s $13 to $15 per share, the stock market trend was up.
Others though blame it on the technology part of the current status of successful IPO’s and claim that Fender is actually going the other way, instead of going with the technology times.
Tim Keating, CEO of Keating Investments had this to say:
“When you look at the growth prospects, what excites IPO investors is the prospect of growing at least 20% to 25% over the next few years, and Fender doesn’t have those prospects as a more mature company.”
I wondered this just the same when Fender announced it’s IPO plans.
Basically, investors will only go forward if they think it’s worth it. Apparently, not worth enough at the moment.
Weak consumer spending is also being blamed for Fender pulling it’s IPO.
Fender is still the most known and biggest guitar maker in the world. The classic Strat and Telecaster guitar models, created in the 1950s, are still made today.
What do you think of Fender pulling it’s IPO? Right move or wrong move?