Corsair Postpones IPO, Waits For Better Times
Has the botched Facebook IPO scared off Corsair from going public?
The timing of Corsair's announcement that current market conditions equity market conditions are too "weak" to justify an IPO may be just coincidence, but it is certainly interesting. Facebook's stock appears to have landed at $32 per share, more than 20 percent down from what mortal investors had to pay when the stock became available for trading last week. The hype surrounding Facebook's IPO and the subsequent crash on the floor of reality will have investors looking at upcoming IPO's with much greater scrutiny.
Corsair co-founder and CEO Andy Paul commented briefly on the decision to pull back and said that Corsair's "business is growing, and is generating increasing profitability and cash flow." He added: "We have decided that we will re-launch when equity market conditions are more favorable. While we do intend to expand our capital base through public capital markets, our existing capital structure and balance sheet provides sufficient capital to enable continued investment in our brand strength, products and people.”
Corsair did not indicate when it might consider to file for an IPO. The company was founded in 1994, employs 383 people and has annual revenues of about $326 million.
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Douglas Perry was a freelance writer for Tom's Hardware covering semiconductors, storage technology, quantum computing, and processor power delivery. He has authored several books and is currently an editor for The Oregonian/OregonLive.
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aevm Everybody keeps saying that Facebook's IPO was a failure (botched, crash, etc.)... And yet, the insiders received $16 billion for about 16% of a company that is worth a lot less than $100 billion. As far as they are concerned, the IPO was a massive success.Reply
Corsair will probably file for an IPO after the US elections. because the stock market hates the uncertainty. I'll buy some stock that day, just because I've got a bunch of Corsair products and they all work :)
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nevilence Corsair sells a real purpose built useful product, facebook sells status updates and hopeless causes, I'm pretty sure Corsair would be a lot more successful than Zuckerburgs failure (or successful failure depending on how ya look at it)Reply -
may1 Corsair is a good company. They have been producing solid products for customers. Last thing I want to see is this company being ruined by bankers and what not who only see companies such as these as a source of cash to satisfy their greed.Reply -
RealBeast Way to go Facebook, Zuck brought down the whole tech IPO world with what was obviously a failure as an investment to start with -- sorry buy the revenues are not and probably will never be there to make this a Google.Reply
The securities fraud case sounds pretty solid too. :) Oh, I so wanted to short Facebook at $38. -
kronos_cornelius Corsair is great company. If investor did their homework instead of behaving like a school of fish, Cosair would have no problem going public.Reply -
I blame Facebook. How dare you stop one of my favorite PC parts company from doing what they want!Reply
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freggo Don't blame Facebook, blame the greedy morons who bought their overvalued stock at $38 !Reply
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blazorthon freggoDon't blame Facebook, blame the greedy morons who bought their overvalued stock at $38 !Reply
Why can't we blame both Facebook and the morons?