IPO Watch: Deals Disappoint
NEW YORK ( TheStreet) -- Is the interest in initial public offerings cooling off? If the last two weeks are any indication, it seems like it.
Kraton Performance Polymers (KRA) became the second deal this week to receive a lukewarm greeting. The polymers maker offered 10.3 million shares for $13.50, significantly below its expected range of $16 to $18 each. Shares of the company fell to $13.21 earlier in the day, but are currently exchanging hands at $13.51.
Natural gas producer Crimson Exploration (CXPO) also sold 20 million shares for $5 each, slightly lower than the forecast of $6 to $8 each.
As a result, shares of the company have plunged 12.5% in afternoon trading to $4.55.On Wednesday, Cobalt International Energy (CIE) tumbled more than 7% then closed flat on its first day of trading -- that was after pricing shares at $13.50 each, less than the $15 to $17 it had predicted. Team Health is also expected to price shares below forecasts this week, and National Beef announced on Thursday that it is postponing its offering due to weakness in the IPO market. The IPO market started dwindling last week, when only four out of the eight companies expected to price shares actually did. And some of those that did price, like KAR (KAR), came in below expectations. -- Reported by Jeanine Poggi in New York. >>See our new stock quote page.
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