Will Facebook IPO fiasco hurt Outback Steakhouse parent plan to go public?
Wake up and good morning. Facebook's flawed initial public offering has left egg on the face of the Nasdaq market which the social media giant chose for its IPO. Some banks offering Facebook shares warned favored investors that the company was not delivering financial results to justify its high initial price. Small investors were blindsided and now there's talk of investigations and possibly some reimbursements to investors that may have paid too much at the start. It's all about market fairness, as this New York Times story notes.
Why do we care? Because Nasdaq has dozens of other companies in the pipeline waiting to go public. And one of the biggest is the Tampa parent company of such restaurant chains as Outback Steakhouse, Carrabba's Italian Grill and Bonefish Grill. We know it as OSI Restaurant Partners but for the purpose of the IPO, the company will be known as Bloomin' Brands Inc. As in Bloomin' Onion -- get it? Its ticker symbol will be BLMN.
Bloomin' executives are not talking but the Facebook IPO fiasco could not have pleased them. The company plans to raise $345 million using these banks (some of the same that handled Facebook): Bank of America, Merrill Lynch, Morgan Stanley, JPMorgan, Deutsche Bank and Goldman Sachs. Read more in this Wall Street Journal report. The company also added Raymond James and others to its list of bankers, says Reuters.
-- Robert Trigaux, Business Columnist, Tampa Bay Times