Similar to Mercury Messenger, we are hearing reports that the Nanosys IPO has been delayed due to bad weather.
Contrary to optimistic news on Tuesday afternoon, we returned to our screens on Wednesday morning to find that the IPO may not be going as well as expected. Word is that the book looks worse than expected, maybe not even full. Apparently the negotiations between Merril Lynch and Nanosys are still ongoing, which usually means that the book was really bad at the offered price range, but the company still has to be convinced to lower the range.
Well see if our pricing predictions were correct later today. Merril Lynch have two options, lower the range to convince instiutions to buy, or postpone the IPO.
Brokers tell us that they normally would prefer lower pricing ranges since they have a strong interest that their investors/clients won’t be dissatisfied afterwards.
Postponement, which could be up to a year in the worst case, would be embarrassing for Merrill and lead to recriminations between the bank, the company and investors. Making a dogs breakfast out of this IPO wouldnt look good for anyone involved, but may have a positive outcome in deflating the hype and getting investors to concentrate on products and revenue rather than the promise of jam tomorrow.