IPOs run into a wall
Shares drop after Metals USA's IPO. A biotech can't raise the money it wanted, and a data storage company pulls its offering.
Metals USA (MUSA) tumbled as much as 6% from its $21-a-share pricing Thursday night and was down 3.1% at $19.43. The company raised $239.4 million in the offering.
Metals USA is a metals service center and sells processed carbon steel, stainless steel, aluminum and other metals and processes a variety of steel products. It was 93% owned by private-equity firm Apollo Management.
Some IPO analysts said the pricing had been too aggressive.
Meanwhile, computer storage company Nexsan shelved its $55 million IPO today because investor demand was weak. And regenerative-organ replacement company Tengion (TNGN) cut its offering price to $5 from a planned $8-$10 range.
While the IPO market hit some bumps earlier this year because of turbulent stock markets, there have recently been some successful offerings from technology and financial companies.
Nexsan had hoped to raise about $55 million this week.
The Thousand Oaks, Calif., company makes disk-based storage systems that hold digital information such as e-mail, documents and digital video recordings. It provides storage services for midsized businesses and smaller offices of big corporations -- markets that Nexsan said have been underserved by other major computer storage providers.
Tengion, which is developing functional neo-organs using a patient's own cells, raised $30 million by offering 6 million shares at $5.
But the biotech companny, headquartered in East Norriton, Pa., had originally planned to raise $40 million by offering 4.4 million shares at a range of $8-$10.
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[BRIEFING.COM] The major averages ended the midweek session with slim gains after showing some intraday volatility in reaction to the release of the latest policy directive from the Federal Open Market Committee. The S&P 500 added 0.1%, while the relative strength among small caps sent the Russell 2000 higher by 0.3%.
Equities spent the first half of the session near their flat lines as participants stuck to the sidelines ahead of the FOMC statement, which conveyed no changes to the ... More
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