That huge barrage of technology IPOs this year? It has fired its first dud.
Southborough software firm Globoforce Group PLC abruptly canceled its planned initial public offering late Thursday night, hours before its shares were expected to trade on Wall Street. The company cited unfavorable “market conditions,” though people in the financial sector said it is more probable investors were lukewarm toward Globoforce’s business.
Adley Bowden, director of research at PitchBook, a venture capital research firm, said Globoforce’s last-minute pullback also suggested the large financial institutions that typically invest in IPOs are becoming picky.
“It shows the markets are not totally crazy again,” Bowden said, alluding to past bubbles such as the one that caused the dot-com crash in 2000. “Investors are still looking at financials, still evaluating company by company.”
Globoforce provides cloud-based software that employers use to recognize workers for achievement, such as awards that can be cashed in at a network of e-commerce sites. The company receives a fee whenever those rewards are redeemed and reported revenues of $187 million last year, and a net loss of $6.5 million.
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