Monday, August 14, 2006

Springtime for GNC

Today, GNC has cancelled its proposed IPO. According to Renaissance Capital analyst Melanie Hase, GNC's sponsors wanted to price the shares between $16 and $18, but IPO investors were only willing to pay $13 to $14.

The post IPO GNC would have large and notable defects in its capital structure. Since the beginning of 2006, the IPO market has cooled to post-LIPOsuction IPO's. The Post-LIPOsuction returns have been unattractive (Sealy (ZZ), DynCorp International (DCP), Burger King (BKC). This has even lead to some notable pre-IPO flameouts such as Chart Industries (GTLS).


At August 18, 2006 12:14 AM, Anonymous finance girl said...

GNC, really? Aren't they the moribund vitamin store found in malls? Surprised they'd be doing an IPO...?


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