Endeavor Group Holdings Inc., the parent company of the Ultimate Fighting Championship (UFC), hoped to raise over $ 600 million on its initial public offering on Friday, with stock prices somewhere in the range of $ 30 to $ 32 per share landed share.
Instead, they will raise the white flag.
This is because demand for the stock was "lower than expected" according to the deadline, and Endeavor attempted to counter this by reducing the initial public offering to $ 26-27 per share. That's equivalent to a $ 200 million hit for owner Ari Emanuel, which was still not enough in the end.
"This is a hit for Ari. This has definitely damaged his reputation, "said Lloyd Greif, an investment banker in Los Angeles, to the L.A. Times. "It will be interesting to see what happens next. They will have to figure out how to get access to the capital markets. "