Industry News & Trends Withdraws Its IPO withdrawals from IPO files for IPO. Eight months later, 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? 

Founder of DealerRefresh - 20+ Years of dealership Sales, Management, Training, Marketing and Leadership.
  • W
  • January 28, 2013
Is anyone shocked by this?
  • C
    Cliff Banks
  • January 29, 2013
Tough environment for IPOs for tech-related firms; and the additional debt AT added to pay bonuses and PE investors prior to filing didn't sit well with analysts or media. Also a bit of bad luck. Nobody could have predicted the fiasco that Facebook's IPO would turn out to be (in the short term at least) and AT's filing came very shortly after FB's IPO. We've been expecting this announcement for a while...a smart move for AutoTrader. Doesn't change anything for dealers and probably means Chip Perry gets to hang around for a while longer.
  • D
  • January 29, 2013
Should have little to no impact on dealers overall.