BOCA RATON, Fla.—In the face of uncooperative market conditions, FriendFinder Networks Inc. announced Friday that it has postponed its planned IPO. In a brief statement, the social networking company that also owns Penthouse and Cams.com said “it has chosen not to proceed with its planned initial public offering at this time until market conditions improve.”
Filings made with the Securities and Exchange Commission indicated that the Boca Raton, Florida-based company had planned to raise as much as $240 million selling 20 million shares at $10 to $12 each.
According to Business Week, “The publisher of Penthouse magazine became the third U.S. company to postpone an initial public offering this year amid the deepest stock-market slump since March.
The magazine quotes Jack Ablin, Chicago-based chief investment officer of Harris Private Bank, as saying that this would have been a very challenging environment to try and float any deal. “Investors are on edge,” he said, “and generally you want to present an IPO to an optimistic and hopeful market of investors that can see opportunity in your new venture.”
A request for comment to FriendFinder CEO Marc Bell was not returned by post time.