US IPOs struggle to find the right price
Friday, 23 April 2010
NEW YORK, Apr 22 (Reuters): Investors proved price-sensitive Wednesday as six initial public offerings priced at the bottom of the expected range or below it, according to underwriters.
Another company priced at the midpoint of its expected range and sold more shares, also an indication that underwriters did not accurately gauge demand.
US biotech company Codexis Inc priced shares at the bottom of the expected range, raising 7 per cent less than anticipated. Learning software company DynaVox Inc also priced at the bottom of its expected range.
Biopharmaceutical company Alimera Sciences Inc, investment company THL Credit Inc TCRD.O, oil and gas services company Global Geophysical Services Inc and Canadian communications company Mitel Networks Corp all priced shares below their expected ranges.
Alimera and THL sold more shares than expected but Global Geophysical sold fewer.
Supply chain software company SPS Commerce Inc, the company that priced at the midpoint of its expected range and sold more shares, raised 23 per cent more than anticipated.
Many companies are racing to take advantage of an improved IPO market.
Recent issues have priced above the expected range and traded up, in contrast to many companies that slashed, postponed or ditched their IPO efforts upon confronting a more tempestuous market earlier in the year.
Another company priced at the midpoint of its expected range and sold more shares, also an indication that underwriters did not accurately gauge demand.
US biotech company Codexis Inc priced shares at the bottom of the expected range, raising 7 per cent less than anticipated. Learning software company DynaVox Inc also priced at the bottom of its expected range.
Biopharmaceutical company Alimera Sciences Inc, investment company THL Credit Inc TCRD.O, oil and gas services company Global Geophysical Services Inc and Canadian communications company Mitel Networks Corp all priced shares below their expected ranges.
Alimera and THL sold more shares than expected but Global Geophysical sold fewer.
Supply chain software company SPS Commerce Inc, the company that priced at the midpoint of its expected range and sold more shares, raised 23 per cent more than anticipated.
Many companies are racing to take advantage of an improved IPO market.
Recent issues have priced above the expected range and traded up, in contrast to many companies that slashed, postponed or ditched their IPO efforts upon confronting a more tempestuous market earlier in the year.