Just two days after idealab! pulled the plug on its pending IPO, online venture community Garage.com Inc. played follow the leader this morning by formally requesting the withdrawal of its S-1 registration papers with the SEC. Signed by Garage.com CEO Guy Kawasaki, the request cited general market conditions as the primary cause for its decision.
While the entire public market has been on a bit of a roller coaster ride over the past few weeks, the conditions cited by Garage.com are most likely specific to the private equity investment community given the languishing stock prices of firms like CMGI Inc., Divine Interventures and Internet Capital Group.
Palo Alto, Calif.-based Garage.com had initiated the IPO process in February and was expected to sell of approximately 3.5 million shares of common stock at between $12 to $14 per share. Proceeds were to be used for working capital, opening additional offices, dealing with anticipated operating losses and investment purposes.
Goldman, Sachs & Co., Credit Suisse First Boston and Robertson Stephens were signed on as underwriters while Wilson Sonsini Goodrich & Rosati was acting as counsel.
You’re not The Only One With Problems
In somewhat related news, CMGI operating company AltaVista has taken another hit to its IPO prospects as CEO Rod Schrock announced his resignation this morning, effective immediately. A search is now on to find a successor.
For more on this story, check out our print edition coming this Monday.
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