USA Today reported that all three of the initial public offerings that started to trade last Thursday, lender Ally Financial and drugmakers Adamas Pharmaceuticals and Cerulean, all fell below their offering prices.
Ally Financial broke by falling 4.7 percent below its $25 a share offering price, while Adamas plunged 12 percent from its $16 a share IPO price and Cerulean lost 6.6 percent from its $7 IPO price… While it’s unusual to see three IPOs break in one day, the number of such troubled deals continues to mount. There are now 58 IPOs priced within the past 12 months that are trading below their IPO prices, says John Fitzgibbon of IPOscoop.com. That means a quarter of all deals priced in the period are now broken.
The WSJ also reported last night that Weibo, China’s version of Twitter, sold fewer shares than expected in their IPO. The IPO price was $17 a share, in line with, but at the bottom of, the projected range of $17 to $19. The company sold 16.8 million shares, fewer than the 20 million expected.
So is this just folks tiring of new offerings or are we looking at the start of something bigger?