DALLAS -- Dave & Buster's Entertainment Inc. has called off its planned initial public offering. Steve King, chief executive of the privately held entertainment chain, announced the IPO withdrawal on Oct. 4, a day before the stock was to begin selling on the Nasdaq.
King said that while potential investors had indicated "significant interest," management cancelled the sale because "current market conditions" are unfavorable.
According to an SEC filing before the cancellation, the IPO was expected to raise up to $123.8 million by selling more than 7 million shares for as much as $14.
Dave & Buster's was founded in 1982 and owns 59 stores in North America, and has a franchisee in Canada. The average store open more than a year brought in $9.8 million in fiscal 2011. But not unlike many amusement businesses, Dave & Buster's has had net losses in each of the past three fiscal years, so it's been developing smaller, less expensive store formats to offset expansion costs.
Dave & Buster's traded publicly between 1997 and 2006, when it was bought by a holding company operated by Wellspring Capital Partners and HBK Main Street Investors for $257 million. In 2010, the business was sold for $570 million to Oak Hill Capital Management.
As previously reported in Vending Times, the company's IPO plans were made public in May. | SEE STORY