Shoemaker Cole Haan Inc has abandoned plans to kick off its initial public offerings (IPOs) early this week, making it one of the most high-profile financial casualties of the coronavirus outbreak among the U.S. companies pursuing stock market debuts, according to people familiar with the matter.
The company made the decision after the S&P 500 Index lost close to 12% of its value last week, the fastest such correction on record. Such volatility makes it difficult for IPO underwriters to find steady demand for a company's shares.
Cole Haan, along with Warner Music, which has also reportedly canceled its IPO, had hoped to communicate to the market their targeted price ranges for its shares and begin formal meetings with potential IPO investors on Monday, the sources said. The companies have now put these plans on ice until the market improves, the sources added.
The sources requested anonymity because the delays have not been announced. Cole Haan declined to comment.
Companies were rushing to complete their IPOs this year to beat the political uncertainty that traditionally dampens stock market debuts close to the U.S. Presidential election in November. The coronavirus outbreak has now derailed such plans for many IPO hopefuls.
Private equity firm Apax Partners acquired Cole Haan from Nike in 2012 for $570 million. The company posted $33.1 million in net income for 2019, up from $23.1 a year earlier.
Some $65 billion in stock was sold through U.S. IPOs in 2019, up modestly from 2018, thanks to high-profile listings by companies such as Uber Technologies Inc and Lyft Inc , according to FactSet.