A poor omen for the proposed IPO of NXP is that over half the 13 IPOs of private equity backed companies this year have resulted in losses by those who bought the shares, according to data compiled by Bloomberg and published in BusinessWeek..
However other IPOs, of companies not owned by y private equity companies, have shown profits for the people buying shares.
This suggests that people are wary of buying assets that have been owned by private equity companies.
The private equity owner of NXP, Kohlberg Kravis and Roberts (KKR) wants to sell NXP shares worth $1.15 billion in the proposed IPO.
In view of the Bloomberg data, KKR may have to put on sale a larger share of NXP than it had previously intended to do if it wants to raise the $1.15 billion.
If KKR is not prepared to do that, it may have to postpone the IPO, say analysts.
The purpose of the IPO is, apparently, to return some money to KKR’s investors.