This is bad news for new issues entering the tech sector, since higher interest rates will increase their cost of capital and discourage investors from jumping in.
Indeed, New Market is Europe's most booming market for new issues.
Still, the climate for new issues is tepid.
"We've had a lot of appetite for new issues".
The offering for 26.4 million shares was priced at $29.50 a share, amid a strengthening market for new issues.
When investors are euphoric for new issues, the stocks typically fetch prices well above the expected range.
The market for new issues, of course, has been weak lately and may well have entered into Mr. Fayed's calculations.
Though the mania for new issues has cooled, there have not been many signs of a backlash.
A few lucky companies with good credit ratings may be able to roll over their repayment by finding buyers for new issues.
Nevertheless, the fund managers' demand for such "high-beta" stocks pushed up the market for new issues, turning rising prices into a self-fulfilling prophecy.
A sharp downturn in the Nasdaq stock market in April doused the market for new issues of stock that had been strong in the first quarter.
