By Tyler Durden At Zero Hedge
The market is 4% off its all time highs which means the time to pull IPOs due to "market conditions" has come.
Indeed, out of today's 8 scheduled IPOs, only 4 have been successful. The other four, which also include all of today's proposed biotech IPOs and not to mention Paycom Technologies, a company whose S-1 includes every buzz word imaginable to cloud-based, social-networked man, and which provides "comprehensive, cloud-based human capital management or HCM, software solution delivered as Software-as-a-Service,", have been delayed either temporarily or permanently. Why? The chart below should explain it.
Shown below is the proposed capital raise (based on the midpoint of the indicated IPO range) relative to the company net income, or rather, net loss. It is one of those that needs no comment, but for those who are confused - momentum chasing lemmings suddenly aren't as impressed with cash-burning companies that rely soly on stories of unlimited upside when looking for the greatest fool.
And yet, something is odd about this chart. It is oddly reminiscent of our chart from last Friday showing the IPOs that succeeded. In fact, the two are almost identical.
In other words, in the span of 7 days, something has dramatically changed. What that something is will be revealed as increasingly more market top-ticking IPOs by cash-burning companies are pulled.