Endeavor Group Holdings Inc., the parent company of the Ultimate Fighting Championship (UFC), hoped to raise over $ 600 million during its first IPO on Friday, with stock prices landing somewhere in the range of $ 30-32 per share.
Instead, they will raise the white flag.
That's because demand for the stock has been "lower than expected," according to Deadline, which Endeavor tried to counter by dropping the IPO to $ 26-27 per share. That equates to a $ 200 million hit for owner Ari Emanuel, which in the end was still not enough.
“This is a battle for Ari. It has definitely hurt his reputation, ”Los Angeles 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. "
So far, Endeavor – which bought the UFC for $ 4 billion back in 2017 – will need to develop a new strategy to pay down inflated debt. Maybe it's time to bring the martial arts power back to the market and complete $ 3 billion in black?