Endeavor Group Holdings Inc., the parent company of Ultimate Fighting Championships (UFC), hoped to raise over $ 600 million at its initial public offering (IPO) on Friday, with share prices landing somewhere in the 30- $ 32 on
Instead, they will raise the white flag.
That's because demand for the stock is "lower than predicted," according to Deadline, which Endeavor tried to overcome by dropping its IPO to $ 26-27 per share. That equates to a $ 200 million hit for owner Ari Emanuel, which ultimately wasn't enough.
"This is a blow for Ari. It definitely damaged his reputation, "Los Angeles-based investment banker Lloyd Greif told L.A. Times. "It will be interesting to see what happens next. They will have to figure out how to access the capital markets. "
For now, Endeavor – which bought the UFC for $ 4 billion in 2017 – will need to develop a new strategy to pay off its bloated debt. Maybe it's time to launch a combat sports facility and finish $ 3 billion in black?