What 2017's Worst IPOs Have in Common
Sixty days after going public, shares of YogaWorks (NASDAQ: YOGA) and Chicken Soup for the Soul Entertainment were down by at least 40% from their IPO price. Shares of toy manufacturer Funko (NASDAQ: FNKO) fell 41% in just the first day of trading.
These businesses -- yoga studios, video curators, and toy producers -- have virtually nothing in common, except for how they went public. They were sold to the public through "mini-IPOs," raising less than $50 million under Regulation A+, a special type of public offering process with fewer restrictions and less regulatory oversight.
Investors who want to avoid the worst IPOs might want to write off Reg. A+ IPOs in wholesale. Here's why.
Source: Fool.com
