CKE Inc postpones initial public offering

Fri Aug 10, 2012 6:03am IST

Stocks

   

Aug 9 (Reuters) - CKE Inc has postponed its initial public offering citing market conditions, the fast-food chain operator said in a statement.

The private equity-backed company had told the U.S. Securities and Exchange Commission, last week, that it was expecting to sell 13.3 million shares at $14 to $16 per share.

While the S&P 500 has chalked up three-month highs every day this week, the index has climbed only 0.6 percent over the past three sessions, an indication that investors aren't prepared to make aggressive bets despite better-than-expected jobless claims and U.S. trade data.

CKE, which was expected to start trading on Friday on the New York Stock Exchange under the symbol "CK," was offering 6.7 million shares, while selling stockholders offered the rest.

The company, which operates the Carl's Jr and Hardees fast-food chains, hoped to use part of the IPO proceeds to repay debt.

Morgan Stanley, Citigroup and Goldman Sachs were the lead underwriters of the offering.

Carpinteria, California-based CKE was taken private by Apollo Management in a nearly $700 million deal in 2010.

The company, which has more than 3,000 owned or franchised locations across 42 U.S. states and 25 countries, competes with fast-food giants like McDonald's and Burger King .

Other companies that are scheduled to start trading on Friday include the British soccer club Manchester United Ltd and debt-collection company Performant Financial Corp.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Earnings Season

Earnings Season

Reliance Q4 sales rise, refining margin narrows.  Read 

Innovative Solution

Innovative Solution

Turning smog into jewels - a Dutch designer's solution to Beijing's pollution.  Video 

Insider Trading

Insider Trading

Rajaratnam's brother loses bid to dismiss insider trading charges.  Full Article 

Literary Giant Dies

Literary Giant Dies

Mourning and memories in Gabriel Garcia Marquez's languid hometown.  Full Article 

S&P on India

S&P on India

S&P: India's ratings to depend on next govt econ, fiscal policies.  Full Article 

Ambitious Aim

Ambitious Aim

In green car race, Toyota adds muscle with fuel-cell launch.  Full Article 

Bond Market

Bond Market

A star abroad, RBI boss riles bond traders at home  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage