Avago Technologies (Nasdaq: AVGO) said that it has withdrawan a secondary public offering of 24.84 million ordinary shares, due to “adverse market conditions.” Avago shareholders include KKR and Silver Lake Partners.

Back in August, there was lots of talk about whether or not the public markets would accept a highly-leveraged IPO candidate like Avago Technologies. We then heard it again last week as Dollar General prepped its own offering.

Avago did better than Dollar General in terms of its actual IPO pricing, but both companies have traded higher in the aftermarket. So have other leveraged companies like Vitamin Shoppe, Talecris Biotherapeutics and STR Holdings. Overall, PE-backed companies with hefty leverage closed trading yesterday up 6.65% from where their IPOs priced. The only two exceptions this year are RailAmerica (which has tanked) and Emdeon (which is down just a fraction of a percent).

It’s certainly reasonable to argue that many of these companies would trade even higher were they to have lighter balance sheets, but not that high leverage leads to doomed public offerings. This was the topic of my weekly video segment with Reuters, which you can watch after the jump…

NEW YORK (Reuters) – Avago Technologies Ltd (AVGO.O) shares immediately jumped 10.1 percent in their trading debut on Thursday, following the chipmaker’s initial public offering. Avago shares started trading for $16.51 on Nasdaq, before rising as far as $16.75 and then giving back some of those initial gains. In morning trading, Avago shares were changing [...]

NEW YORK (Reuters) – Avago Technologies Ltd priced shares in its initial public offering at the top of the estimate range and sold 20 percent more than expected in an IPO that may give rise to further offerings by private equity backed companies. Avago, a Singapore-based designer of analog semiconductor devices, said it sold 43.2 [...]

Spent some time earlier today on Reuters Insider, from my usual perch. Topic was tomorrow’s expeced pricing of the Avago Technologies IPO, what it could mean for KKR, etc. (plus, a rehash of the below post about Fidelity):

Avago Technologies is set to price its IPO tomorrow night, in what will be the first test of KKR’s recent agreement with Fidelity Investments. For the uninitiated, here is how KKR described the program last month:

Through the new relationship, Fidelity will have exclusive access to retail securities that are allocated to KKR in all U.S. public offerings in which KKR participates as an underwriter, including IPOs and follow-on offerings. Those retail securities will be made available to Fidelity’s retail brokerage customers as well as to accounts managed by Fidelity’s registered investment advisor (RIA), correspondent broker-dealer and other institutional clients. KKR will act as the underwriter of all retail securities that are distributed by Fidelity under the arrangement.

I happen to be a Fidelity retail brokerage customer, so decided to ring up customer service in order to divine some more info about the offering. What I learned, however, was that this agreement is only for certain Fidelity brokerage customers. Specifically, you need to have