Two Rate-Sensitive IPOs Get Cool Reception

Two companies for whom rising interest rates could crimp business -- real estate investment trust Gladstone Commercial(GOOD Quote) and regional bank Texas Capital Bancshares(TCBI Quote) -- made their public debut Wednesday.

Perhaps not coincidently, both of the new issues got a mild reception on their first days of trading.

Gladstone Commercial rose 3 cents, or 0.2%, to $15.03, while Texas Capital -- which postponed its offering in October, citing uncertain market conditions -- closed up 99 cents, or 9%, to $11.99. The performances trailed average debut gains of 14.9% for IPOs this year, according to Dealogic.

"Both of the stocks are exposed to a changing interest rate environment," said Paul Bard, an analyst at Renaissance Capital's IPOHome.com, who has followed the Texas Capital deal more closely. ...