IPOs Are Dropping Like Flies

The subprime flu that’s laid low Wall Street has infected another victim: IPOs. Because of market volatility, 24 IPOs have been shelved this month—the most in a decade, Bloomberg reports. Tommy Hilfiger Corp. highlights a roster of firms that postponed or canceled going public. The largest was Imperium Renewable, a biodiesel producer that says it abandoned its $345 million sale because of “unfavorable market conditions.''

"Unless we have a fairly dramatic shift, the IPO market is going to be pretty dormant,'' said an investment attorney. "Investors don't want to buy into an investment that has a decent likelihood of going down.'' Bloomberg’s IPO Index says first-year stocks dropped 9% last year, compared to the S&P 500’s 6.4% decline. (More IPO stories.)