Six other companies that debuted this week raised less money than they expected. Stock in two of those companies, oil and gas companies Bonanza Creek Energy Inc. and Sanchez Energy Corp., are already 20 percent and 16 percent below their IPO prices, respectively.
Market watchers expect more big technology deals next year including Facebook, reviews site Yelp and online retailer Gilt Groupe. Of the three, only Yelp has filed to go public. But the global economic uncertainty may force the 200 companies hoping to go public in 2012 to temper their expectations. LinkedIn and Groupon, for example, sold less than 10 percent of their outstanding stock in their IPOs, which is considered a small percentage of overall shares to sale in an offering. The small supply helps create demand.
"If they want to get the company public, they'll do a smaller deal," said Frank Maturo, head of cash equity capital markets at Bank of America Merrill Lynch.
The IPO declines and weak stock markets may create an opportunity for investors to buy shares more cheaply as companies and bankers rethink prices for shares."People haven't made money in the IPO market, people are skeptical. But deals can get done if they get priced right," said Francis Gaskins, an analyst at IPOdesktop.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $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
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV