WSJ: IPO withdrawals highest since 2001

WASHINGTON – The job picture wasn’t the only thing that looked slack in August. According to the Wall Street Journal’s Venture Capital Dispatch, the 15 initial public offerings registered with the Securities and Exchange Commission that were withdrawn last month represented the most since April 2001.
The Journal piece blamed a number of factors – “Too many investors at the beach. But add into the mix this month’s crazy jumping bean of a stock market, and the result is caved plans.”
While August was a weak month, 2011 has been a strong year. According to a study by Dealogic cited by the Journal, 87 IPOs have gone to the capital market through August, the most in that period since 2007, when 137 did so.
A separate study done by the Boston Business Journal indicates that money raised from venture capitalists in Massachusetts fell to $145 million in August from $201.4 million in July. The BBJ piece projected a much slower third quarter when compared with the $1.3 billion that was raised in this year’s second quarter, citing Dow Jones VentureSource data.
According to CB Insights’ Jonathan Sherry, he is trying to “determine whether these lows are the beginning of a larger slowdown or perhaps just a late summer swoon.”