Dave & Buster’s Withdrawal Caps Turbulent Week for IPOs

However, Fleetmatics offering has been a bright spot

By Tom Taulli, InvestorPlace Writer & IPO Playbook Editor


The first week of October has been a crummy one for the IPO market. Six offerings went live this week, but the deals were fairly lackluster, marked by sad performances like LifeLock (NYSE:LOCK) dropping by 9% and Berry Plastics Group (NYSE:BERY) shedding 5%.

Worse yet: We were supposed to see seven deals.

Today, Dave & Buster’s withdrew its IPO. The company, which operates large restaurant/video arcades, wanted to issue 7.7 million shares at a range of $12 to $14, but investors weren’t biting. The CEO blamed “continued volatility.”

Not that there hasn’t been volatility in the markets, but it’s a convenient excuse. As InvestorPlace’s Will Ashworth pointed out, Dave & Buster’s has had trouble with finding ways to grow.

The IPO market did have one bright spot of note: Fleetmatics (NYSE:FLTX), which operates a cloud-based platform that helps manage commercial vehicle fleets.

The company issued 7.8 million shares at $17, which was at the top of the $15 to $17 range. So far in today’s trading, the stock price is up 31%.

Fleetmatics charges is customers subscriptions, which grew by 42.7% in 2011 to $92.3 million. Adjusted EBITDA came to $21.7 million.

And the market opportunity is large. According to a report from Frost and Sullivan, there are 18.5 million local commercial fleet vehicles in the U.S. and Canada; Fleetmatics currently has deployments across just 281,000 vehicles.

Tom Taulli runs the InvestorPlace blog IPOPlaybook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook.”  Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/ipo-playbook/dave-busters-withdrawal-caps-turbulent-week-for-ipos/.

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