Rhodium Enterprises, a Bitcoin miner, has postponed its IPO because of market conditions, a person familiar with the matter said.
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A choppy stock market has claimed another IPO victim, with Rhodium Enterprises, a Bitcoin miner, postponing its offering.
Rhodium was expected to price its initial public offering on Wednesday and start trading Thursday. The Texas company’s IPO was “postponed due to market conditions,” a person familiar with the situation said. Rhodium did not immediately return calls for comment.
Rhodium is a digital-asset-technology company that began mining Bitcoin in September 2020. It had filed to sell about 7.7 million shares at $12 to $14 each and planned to trade on the Nasdaq under the ticker RHDM. B. Riley Securities and Cowen are lead underwriters on the deal, a prospectus said.
Four Springs Capital Trust, a REIT, was also scheduled to trade Thursday, but it’s not clear if the offering has priced. Four Springs was seeking to sell 18 million shares at $13 to $15 a share. It planned to trade on the New York Stock Exchange under the symbol FSPR, a prospectus said. The company did not return messages for comments.
Rhodium is the latest company to pull its IPO. Justworks, the HR software company, postponed its deal last week due to market conditions. Trajector, the benefits software company, also yanked its offering earlier this month. It did not provide a reason for the withdrawal.
Unlike 2021, where even weak companies could find demand, the environment for IPOs turned more challenging this week. New issues typically take their cue from the broader stock market, which is bumpy right now.
The
Nasdaq
on Wednesday dropped into correction territory, down almost 11% from its late November all-time high, though it was up 1.6% as of midday on Thursday. The Renaissance IPO exchange-traded fund (ticker: IPO), which tracks companies for three years after they go public, is down 17% this year as of Wednesday’s close. This compares to the
S&P 500,
which is down 5.5%.
New issues have cooled considerably this year. Twenty-two companies, including special purpose acquisition companies, or SPACs, have gone public as of Jan. 18, raising roughly $5.2 billion, Dealogic said. This is down 65% from the 63 new issues that listed their shares during the same time period in 2021, and were valued at $22 billion.
“For the vast majority of companies, the IPO market is shut down,” said Matt Kennedy,…
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