ReachLocal (RLOC) priced this week at $13, well below its range ($17-19). It opened and sank below $12 then rose to finish the week above $15, still well below the range.
This disappointment has spawned speculation that the IPO market is freezing up. One can dismiss the RLOC situation due to a horrific couple of weeks – they were on the road in Europe the week the Euro seemed about to implode – but it comes after other withdrawn or poor offerings.
The next interesting IPO is Tesla, which is scheduled to go on the road in June. It just cut a deal with Toyota, on the backs of a deal with Mercedes, so as a business it seems to be in high gear. Electrics are the future of transport, and Tesla is the first new car company out of the starting blocks. This IPO should give it access to the gallons of capital it will need to compete at world scale.
Disclosure: I have an indirect venture interest in RLOC and Tesla
Risk Our Money Not Yours | Get 50% Off Any Account
Disclaimer: This page contains affiliate links. If you choose to make a purchase after clicking a link, we may receive a commission at no additional cost to you. Thank you for your support!
Leave a Reply