Aug 9 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.
Trending On Reuters
India's top energy explorer Oil and Natural Gas Corp said on Thursday it expects current-quarter profit to be boosted by an interim rule change on discounts offered by upstream oil companies to state retailers. Full Article