Investors continue to be picky when it comes to initial public offerings, with NetMotion Wireless postponing a planned stock sale on Friday, the second tech company IPO to be pulled this month.
NetMotion planned to raise $30-million in a stock offering led by National Bank Financial. The Seattle-based company helps out-of-office employees continue to work online. NetMotion's decision to hold off comes a week after online book publisher Lulu Ltd. set aside its planned $70-million IPO.
However, large IPOs from two REITs are moving forward. Investment bankers say there is strong investors interest in stocks that promise high yields, in the form of cash distributions, but far less interest in early stage growth stocks.
The NetMotion IPO was pulled after Mitel Networks made a less-than-impressive debut on Nasdaq on Thursday. The company sold shares at $14 (U.S.) each, and saw its stock drop 12 per cent in the first day of trading. Mitel has been trying to go public for several years, and downsized its offering and dropped the price of the shares from its initial target in order to get a deal done.