Aftermarket Falloff Suggests IPO Market Is Cooling

IPOs are cooling.

Initial offerings raised yet another record amount in March, following stellar performances in January and February. But don't be fooled by the numbers: Deals are giving up first-day gains quickly, and this week saw a number of lackluster debuts due to Nasdaq jitters and a glut of deals, observers say.

IPOs in the first quarter raised $23.7 billion, making it the second-busiest period ever after 1999's fourth quarter, according to Thomson Financial Securities Data. April likely will produce another record, with AT&T's (T Quote) wireless spinoff alone expected to raise around $11.5 billion. ...