YOGAWORKS POSTPONES IPO; CITES MARKET CONDITIONS (I.E. VALUATION)
YogaWorks (YOGA), the boutique fitness studio chain, was scheduled for an IPO on the NASDAQ exchange Thursday, but chose to postpone citing "market conditions". Valuation appears to be the issue here. At $13/share, the company would have had a public market cap of $187 Million, 3.4x its 2016 revenue, while not yet profitable. In fact, losses increased in 2016, up from $9.2 Million to $9.4 Million. No timeframe has been given on if/when the IPO will occur.
Howie Long-Short opines: Count this one as a win for retail investors, who were likely saved from future losses. Not so much for Stephens and the other second-tier bankers.
Fan Marino says: You can't say Howie didn't call this one.