This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Stock Market Decline Takes Shine Off 2011 IPOs

Many companies hedged their bets. Sixty-six companies withdrew plans to raise money through new stock offerings in 2011, a 27 percent rise from the previous year, and the biggest number since the depths of the recession in 2008, according to IPO Investment firm Renaissance Capital. Stocks of many of the companies that took the plunge haven't fared well. About two-thirds of companies that went public this year are trading below their offering price, according to advisory firm IPO Boutique. As a group, IPOs that went public this year lost 13 percent of their value â¿¿ the first negative return since 2008.

Some of those themes were apparent this week, the last before the IPO market shuts down for the year in the U.S. Twelve companies had lined up IPOs. If all of them had begun trading, it would have marked the busiest week for IPOs since November 2007. That didn't happen. Three of the companies, information technology services provider FusionStorm Global Inc., industrial materials maker GSE Holding Inc. and chemicals and metals maker Luxfer Holdings PLC, postponed their offerings.

There were some successes. Jive Software Inc., a company that is trying to become a corporate networking version of Facebook, and luxury clothing and accessories company Michael Kors Holdings Ltd. priced higher and sold more shares than expected. Both soared on their first trading day.

And then there were the mixed successes. Zynga Inc., which specializes in making games for social networking website Facebook, raised $1 billion, in the biggest Internet IPO since Google's 2004 launch. The offering price of $10 per share values the company at about $7 billion â¿¿ at least $13 billion less than some market watchers predicted back in July when the company filed to go public. The shares fell 50 cents, or 5 percent, to close Friday at $9.50.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,698.21 -47.77 -0.27%
S&P 500 2,108.06 -0.57 -0.03%
NASDAQ 5,130.9280 +2.1430 0.04%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs