RPT-IPO VIEW-Fourth quarter off to dismal start

(Repeating item that moved late Friday)

By Phil Wahba and Jui Chakravorty Das

NEW YORK, Oct 5 (Reuters) - After concluding its most dismal quarter in nearly six years, the market for initial public offerings looks set to continue its losing streak.

The fourth quarter began with an inauspicious start.

Texas-based Safety-Kleen Inc, a provider of environmental services for the oil industry, withdrew its $350 million IPO on Thursday, citing "adverse market conditions." Had the deal launched, it would have broken a nearly two-month dry spell without a single IPO in the United States. There are no IPO pricings current scheduled, Dealogic's deal calendar reports.

There were no U.S. deals in September, the first time since 2002 that the month was devoid of IPO activity.

"The general market is so volatile right now and when there is so much uncertainty, an IPO is the first thing that gets really unattractive," Sal Morreale, who tracks IPOs for Cantor Fitzgerald in Los Angeles, said, adding that risk-averse investors seek stability before buying IPO's.

Safety-Kleen tried to price its deal in a week that started with a near 7 percent drop in the Dow Jones Industrial Average's history on Monday followed by a 4.68 percent rebound on Tuesday, only for the index to drop again on Thursday and Friday.

The Chicago Board Options Exchange Volatility Index, known as the VIX .VIX or fear index, had a record high close of 46.72 on Monday, and receded slightly to 45.14 on Friday, hovering at levels not seen in six years. Fear is the enemy of IPOs.

"Underwriters have other issues to deal with right now," said Francis Gaskins, an analyst with IPO Desktop. "Not only are IPOs harder to do because of the lack of credit availability, but it also makes it harder for them to focus on these deals when Wall Street is in the middle of a restructuring."

Lehman Brothers filed for bankruptcy last month, with Barclays Plc (BARC.L) buying up its solid assets at rock-bottom prices.

Bank of America (BAC.N) purchased Merrill Lynch MER.N. JP Morgan (JPM.N) bought Washington Mutual (WAMUQ.PK) and on Friday, Wells Fargo (WFC.N) and Citigroup (C.N) were tussling over buying Wachovia WB.N.

GLOBAL MALAISE

Outside the United States, the outlook for the IPO market remains unpromising.

There was only one IPO last week, a $10.1 million deal by Chinese biotechnology company Bloomage Biotechnology (0963.HK), which began trading on the Hong Kong Stock Exchange on Friday.

It is the first time since April 2003 that a week has gone by with only one IPO in the world, according to Thomson Reuters data.