FORBES - Nov 11 - 33.3M shares of Match Group are going on sale for $12 - $14 a piece. IAC wants to use the cash to lower its debt while leaving IPO investors with little economic control of Match and no voting control.
4 reasons to swipe left on this IPO.
- Shareholder unfriendly structure
This IPO gives the public shares with very little voting power. It is a common stock with 1.6% voting power.
- Proceeds go to repay parent debt
After acquiring POF, Match will have $1.3B in long-term debt.
- Disappointing valuation
Match’s valuation is way below what analysts expected.
- Weak underwriters
The names of the lead underwriters on an IPO send a signal to investors about its quality. Topping the list are Goldman Sachs and Morgan Stanley.