Buyer's IPO Market: 5 Companies Go Public After Cutting Deal Size
Renaissance Capital IPO Research submits:
Of the five public offerings that were successfully launched last week, all priced below the midpoints of their respective ranges. Additionally, two companies slated to begin trading, Chinese solar company JinkoSolar Holding (JKS) and workers' compensation insurer Patriot Risk Management (PMG), both postponed their IPOs. While valuation decreases and postponed offerings were trends in late 2009, the year-to-date volatility in the overall markets has further affected IPO activity, forcing underwriters to either shelve deals or accommodate prospective buyers by offering generous price reductions. The week's strongest performer was Piedmont Office Realty Trust (PDM), a REIT that owns 73 office buildings in major US cities, which raised $174 million on Tuesday by offering 12 million shares at $14.50, below the range of $16-$18. The company had originally planned to offer 18 million shares. Despite the reduction in deal size, Piedmont's stock rose 8% in its debut and an additional 3% in aftermarket trading, helped by a strong balance sheet and an IPO price that offered a discount to book value. Complete Story »
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