Fender Musical Instruments Corp. has changed its tune. The company has called off its planned initial public offering (IPO) of Fender stock.
According to a statement released by Fender on Thursday, the company blames the economy here and abroad.
“Current market conditions and concerns about economic conditions in Europe do not support completing an initial public offering at what we believe to be an appropriate valuation at this time,” Chief Executive Larry Thomas said.
As we reported earlier, Fender planned to have a total of about 26.4 million shares outstanding after going public, which would have valued the company at around $395 million.
The company, the largest seller of guitars in the U.S., was founded by Leo Fender in 1946. Fender sold his company in 1965. The company is based in Scottsdale, Arizona, but makes the bulk of its iconic instruments in Corona, California.