While IPO investors say they're looking for predictability, they also seem to want some excitement.
On Tuesday, shares of
-- three well-known, established and vaguely boring companies -- all closed below their issue prices.
"These are companies in dull sectors that are not doing well," said Francis Gaskins, an editor at
IPODesktop.com. "They are not in high-growth categories."
Sirva, the parent of North American and Allied Van Lines, was created in a 1998 leveraged buyout led by Clayton Dubilier & Rice. Underwriters sold 21 million shares to the public Tuesday, reducing the private equity giant's stake to 27.5 million shares from 32.2 million. The company was profitable in 2002 and in the first nine months of this year. But on its first day of trading, Sirva's stock fell 40 cents, or 2.2%, to $18.10.
According to filings with the
Securities and Exchange Commission
, the company is planning to grow sales and earnings by cross selling its relocation and moving services. But the deal priced at $18.50 a share, the low end of an $18 to $20 range.
Elsewhere, Pinnacle Airlines fell 90 cents, or 6.4%, to $13.10 on its first day. The regional airline was expected to debut Friday, but postponed its offering as it reduced the range of its offering.
The Pinnacle IPO is a spinoff from
. Northwest's pension plans brought the deal in order to help relieve the airliner's obligations.
Finally, Synnex fell 30 cents, or 2%, to $14.20 after delaying the offering. The IT outsourcer was profitable in each of the past four years. Nevertheless, demand was weak.
"This is a big, predictable business. It is hard for them to show anything exciting," said Gaskin.