Dave And Busters Fails To Sell It To You Sucka

I meant to write about this story from last week, but I ended up being too busy, then went out of town, yadda yadda yadda, here it is now.

Dave and Busters, the arcade / restaurant chain that was taken private several years ago, is trying to go public again.   Boom – what a perfect time to sell stock, right?  The Fed has manipulated the yield curve in an effort to force investors to take more risk and markets are within spitting distance of all time highs.   Must have been a bonanza…   So we need to do some translating when we see this article from October 4th (emphasis mine):

“Dave & Buster’s Entertainment, the private-equity backed restaurant and arcade for grownups, has withdrawn its IPO, scheduled to price tonight.

The company said that “based on continued volatility for new issuers in the equity market” it decided not to price at this time.

“While we received significant interest from potential investors, current market conditions are not optimal for an IPO at this time,” said CEO Steve King.”

Let me translate that for you:  “We couldn’t sell the shares for as much as we wanted to sell them for.”   The rest is just nonsense.  See, current market conditions are friggin’ PHENOMENAL for an IPO at this time.   You’ve gotta love the reference to continued volatility for new issuers, right?  Almost like they’re trying to blame Facebook or something?   Pssst – price it right, and there won’t be significant volatility!

I wrote a similar post almost 2 full years ago when Harrahs pulled their then-IPO (which was later completed).  Now we’ll watch and wait and see what sort of magic conditions Dave and Busters waits for to try again in their effort to sell it to you, sucka.

WSJ: Game Over: Dave and Busters Withdraws IPO

related: Harrahs Fails to Sell It To You, Sucka


disclosure: no positions in any of the stocks mentioned ($FB, $CZR)

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