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Fender: "IPO? Not At This Time".

Discussion in 'Miscellaneous [BG]' started by SurferJoe46, Jul 20, 2012.

  1. NEW YORK (AP) — A famous piece of rock and roll history has changed its tune about going public.

    Fender Musical Instruments Corp., which produced guitars strummed by the likes of Buddy Holly and Eric Clapton and famously set on fire by Jimi Hendrix, said late Thursday that it dropped its plans for an initial public offering.

    The news came amid a handful of successful IPOs, prompting speculation about the reasoning behind Fender’s decision.

    Fender CEO Larry Thomas said current market conditions and Europe’s ongoing economic woes wouldn’t support an IPO that values the company appropriately.

    Industry observers said that while there may be some truth to that, Fender’s reasons may have more to do with the different growth prospects between Fender and the technology companies that have recently gone public than the current IPO environment.

    The Scottsdale, Ariz.-based company, which sells its guitars in 85 countries, originally filed papers for its offering in March and set a price range of $13 to $15 per share last week. At the time of its original filing, the overall market was trending up.

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