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
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.