AutoTrader.com files for IPO. Eight months later, AutoTrader.com withdrawls its IPO filing.
The article over on InvestorPlace claims muted growth and higher debt may be the reasons.
So why pull the IPO?
According to the article…
Well, first of all, the growth ramp was a bit ordinary. For the first half of 2012, revenues climbed by 15% to $563.1 million, and profits were up 29% to $41.6 million.
Another warning sign was that — last summer — AutoTrader borrowed about $400 million to pay a dividend to its insiders. As a result, the debt load increased to $1.3 billion. – Tom Taulli, InvestorPlace Writer & IPO Playbook Editor
What do you think?
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