Selective Market for IPOs Favors Some, Not Others

Wednesday told the tale of two IPOs and two very different issues.

One was large, a spinoff, which listed on the New York Stock Exchange and priced below its range. It closed up about 8%. The other was a whole lot smaller, an independent provider of communications technology, which listed on the Nasdaq Composite index and priced above its range. It closed up about 54%.

The dichotomy in background and performance of the two stocks underscores the varying ingredients necessary for success in a new-issue market dominated by the continued slide of the Dow and Nasdaq. Many companies have refrained from going public in this environment, resulting in a limited selection of IPOs that generally haven't caught investors' interest. ...