Pactiv Evergreen Shares Slump After IPO

Pactiv shares fell in double-digit percent in their first day of trading, in contrast to the big jumps in some other recent IPOs.
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Shares of food and beverage packaging producer Pactiv Evergreen PTVE slumped in their first day of trading, in contrast to the big jumps seen in other recent initial public offerings.

Pactiv had set its IPO price at $14, below the $18-to-$21 range it estimated last week.

The first market transaction Thursday was at $12.75. Pactiv shares recently traded at $11.35, down 19% from the IPO pricing.

Pactiv, based in Lake Forest, Ill., took in $574 million from the IPO and was valued at $2.46 billion based on the IPO price.

While Pactiv struggled, cloud-services company Snowflake  (SNOW) - Get Report more than doubled its IPO price in its first day of trading Wednesday. Snowflake shares at last check pulled back 11% to $225.

JFrog also made a successful debut, with its shares jumping 49% to $71.27 after being priced at $44. Its estimated range was $39 to $41 a share. The Israeli software-management-technology provider on Monday had raised its proposed price range from a prior estimate between $33 and $37. 

At last check its shares were trading off 2.1% at $63.47.

The Renaissance IPO ETF  (IPO) - Get Report in 2020 was trading recently down 2.2% at $48.46. In 2020 through the close of trading Wednesday, the ETF was up 59%.

As for Pactiv, it said in its prospectus that it's the largest manufacturer and distributor of fresh-food-service and food-merchandising products and fresh beverage cartons in North America, measured by revenue.

“We produce a broad range of on-trend and feature-rich products that protect, package and display fresh food and beverages for consumers who want to eat or drink fresh, prepared or ready-to-eat food and beverages conveniently and with confidence," Pactiv Evergreen said.

For the first half of 2020, Pactiv swung to net income of $2.58 a share from a loss of 70 cents a share in the year-earlier first half. Revenue fell 9.3% to $3.26 billion.

Among the risks for investors: “[The] prices of many of our raw materials have fluctuated significantly in recent years,” Pactiv said.