NEW YORK Dec 5 Nasdaq said the initial public
offering of WhiteHorse Finance Inc failed to go off on
schedule Wednesday morning due to "human error," and the
offering was rescheduled for later in the day.
The error brought back memories of Nasdaq's botched Facebook
IPO in May.
Nasdaq said in an email to its customers, "Due to a NASDAQ
human error, the initial public offering of WhiteHorse Finance
Inc has been rescheduled for approximately 3:00 p.m. EST."
Nasdaq had agreed with WhiteHorse and its underwriter to
push trading beyond the 11 a.m. EST (1600 GMT) slot scheduled
earlier. But instead of extending the IPO, a person on Nasdaq's
market surveillance team canceled it, according to a source with
direct knowledge of the matter, who was not cleared to speak
publicly about it.
"This was a human error, this wasn't a trading system or a
computerized glitch," the source said.
Nasdaq said all open and pending orders entered for the IPO
would be canceled and new orders would start being taken at 2
p.m. EST (1900 GMT).
Nasdaq spokesman Joe Christinat said the company had no
comment on the IPO beyond emails sent to customers on the
"At the end of the day, you don't want to see this,
especially post-Facebook," said Chris Allen, an exchanges
analyst at Evercore Partners. "But mistakes happen. It's bad
Market makers claimed to have lost hundreds of millions of
dollars in the Facebook IPO fiasco.
The WhiteHorse offering consists of 6.67 million shares and
had priced at $15 per share, the company said earlier.
Whitehorse is a business development company that originates and
invests in loans to privately held small-cap companies.
Nasdaq OMX shares were down 1.6 percent at $23.78,
underperforming a 0.5 percent decline on the Nasdaq Composite