Endeavor, who is the parent company of the UFC, was set to go public today with their IPO, but that won’t be happening anymore.
A report from the Wall Street Journal is stating that due to a poorer than hoped for reception, a decision was made by Endeavor to pull their IPO. This isn’t the first time the company has either pulled or delayed their IPO, as a similar situation happened this past Summer after Endeavor purchased OnLocation Experiences.
The hope internally for Endeavor was that they would raise somewhere between $30 to $32 per share, which would bring the company approximately $600 million in capitol. Endeavor had produced a video in an attempt to capture the interest of potential investors, but the response what the opposite of what the company was looking for.
Factors such as a B credit rating and ever growing debt is reportedly what led to a less than ecstatic return from potential investors.
Barron's Financial & Investment News notes that “there are provisions in their ownership agreement that could trigger an early IPO—and by August 2021, any of the three owners can individually demand that the [UFC] go public.”
This could be nothing more than a delay so that Endeavor can repackage themselves for a future IPO offering and re-enter the market at a future date.