Health info firm HealthPort withdraws IPO, says market conditions unfavorable

HealthPort nixes IPO, citing weak market

NEW YORK — HealthPort Inc., a health care information technology company, said it is withdrawing its initial public offering due to unfavorable market conditions two months after delaying the IPO for the same reason.

Healthport, which disclosed that it was pulling the offering in a letter filed with the Securities Exchange Commission, joins a growing number of companies that are having trouble raising money through initial offerings.

Earlier this week, Terreno Realty Corp. postponed its offering indefinitely due to market conditions, while Penthouse magazine publisher FriendFinder Networks Inc. delayed its IPO until early next week to answer questions from the Securities and Exchange Commission.

Of the five companies that have made it to market in the past two weeks, four tumbled in their trading debuts. All closed Wednesday below their offering prices.

Some other companies, including Century 21 China — also known as IFM Investments Ltd. — have pared back the size of their offerings.

Since early November, about a third of the IPOs scheduled to start trading have been delayed or scratched entirely.

HealthPort had been hoping to raise about $90 million.

Proceeds from the Alpharetta, Ga.’s company’s offering would have gone to redeem preferred stock and repay debt.

The lead underwriters were to have been Deutsche Bank Securities and William Blair.