After Facebook’s (NASDAQ:FB) initial public offering flop, we started to see signs of an IPO market comeback. We had hot deals like tech security firm Palo Alto Networks (NYSE:PANW), as well as cloud-based business ServiceNow (NYSE:NOW).
But now, we’ve hit a bump in the road. Fender Musical Instruments — the No. 1 seller of electric, acoustic and bass guitars — has decided to nix its offering.
A few things went wrong, but two primary issues stood out.
For one, Fender has a large amount of business Europe — needless to say, the continued crisis across the Atlantic has caused concerns about demand.
But also, the U.S. market might be a problem. Although America still is not in a recession, the recovery is tepid, hampering interest in higher-end guitars.
Tom Taulli runs the InvestorPlace blog IPOPlaybook, a site dedicated to the hottest news and rumors about initial public offerings. He also is the author of “All About Short Selling” and “All About Commodities.” Follow him on Twitter at @ttaulli. As of this writing, he did not own a position in any of the aforementioned securities.