Updated from July 15 Shares of Freescale Semi ( FSL) were rising Friday in their first day of trading, bucking a decline in the broader chip index. But underwriters were forced to sharply cut the IPO price of Freescale shares to $13, reflecting soft Wall Street demand for the issue. In a June filing, Freescale had outlined plans to sell 121.6 million shares priced in the range of $17.50 to $19.50. Thursday evening, underwriters led by Goldman Sachs, Citigroup and J.P. Morgan priced 121.6 million shares at $13, raising $1.58 billion. On its first day of trading on the Big Board, the stock was recently up 63 cents, or 4.9%, to $13.63. The Philadelphia Stock Exchange Semiconductor Index was off 1.2% to 413.67. Sal Morreale, who tracks IPOs for Cantor Fitzgerald, said the deal came to market "at an attractive price where investors got involved. It really wasn't put into a lot of what we call 'flippers' hands. But it shows you that in an environment like this, the institutional investors are going to mandate the pricing." (Cantor Fitzgerald does not have a stake in the IPO.) The offering is not being well-received because of its unfortunate timing, he said, noting disappointing news this week from giant Intel ( INTC). A Merrill Lynch sector downgrade also soured sentiment on the chip sector. Had Freescale been going public six months or a year ago, it would have been a different story, he said. "You have a real hard week in that sector," Morreale said. "The timing of the deal is tough." Worsening matters, analysts at both Sanford Bernstein and Fulcrum issued decidedly unenthusiastic research notes on Freescale prior to the IPO pricing Thursday evening. Freescale, which sells chips used in autos, networking and wireless communications, has only recently returned to the black after posting multibillion-dollar losses in the early 2000s.