Why private-equity IPOs often fall flat

People who argue that private-equity-backed IPOs are performing no worse than other listings are missing the point. Sebastien Canderle explains why.

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The float got away, but debt weighed it down

As stockmarkets reach new all-time highs, several companies that previously underwent leveraged buyouts (LBOs) are in the process of listing. This includes a number of firms that pulled initial public offerings (IPOs) last year in difficult market conditions. For example, US flooring retailer Floor & Decor, which floated on 27 April and enjoyed an eye-catching 44% leap in its share price on the first trading day had originally pencilled in its IPO for this time last year.

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