The repercussions for poorly timing an IPO can not be understated, and would also send a massive red flag to the market and potential sophisticated investors that the BOD don't know what they are doing by blindly raising capital in a declining and volatile market. Especially when the capital is not needed any time soon. Even as a humble retail investor this would raise questions to me as to why now?
Large funds and the like are taking money out of the market during the downturn not pumping it in until they are confident they can see the bottom, even then they will prey on market fear and uneasy sentiment to manipulate filling coffers before it runs back up. Markets chop and change in an instant always have always will, that's business. How you navigate the turbulence is what separate's you from peer's and competition.
Not to mention those that participated in any IPO would likely have seen there capital ravaged in the market correction in a loose loose situation for investor and company alike. The SP would have tanked and early movers would be left running for exits, making any future capital event significantly more difficult.
In my opinion there wasn't even a choice to be made here, the market made it for us and we were smart enough to listen. Kudos to the BOD and our advisors for making what might have been a tough but necessary decision.
IHL Price at posting:
42.0¢ Sentiment: Buy Disclosure: Held
