Marlin IPO Prices to Move
Equipment lessor Marlin Business Services (MRLN) rose 15% on its first day of trading, in another sign of strength for the IPO market.
Marlin sold 4.4 million shares at $14 a share, the middle of its proposed range, valuing the deal at about $62 million. Of that amount, selling shareholders are unloading about 1.3 million shares. U.S. Bancorp Piper Jaffray and William Blair were the underwriters.
Ahead of Marlin's debut, some worried about the pricing. "Mid-range pricing is not a curse, but a higher degree of confidence comes into these IPOs when pricing is at the upper end," wrote David Menlow, president of IPOFinancial, in pre-open commentary.
Nevertheless, the stock, which gained $2.15, or 15.4%, to $16.15 Wednesday, had a better debut than many of the recent biotech offerings. Last week, Nitromed (NTMD) and drug manufacturer Pharmion (PHRM) fell below their issue prices on their opening days.Unlike those companies, Marlin is profitable. The financer of commercial equipment, such as copiers and computers, earned $718,000 in the six months ended June 30, according to Securities and Exchange Commission filings. It has recorded net income in each of the last three years.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV