IPO Roundup: 3 companies fall in their debut
NEW YORK (AP) — A trio of newly public companies had a rough first day on the stock market Friday, joining the broader market selloff. Shares of all three companies that had their initial public offering Friday fell.
Of the three, app maker Viggle dropped the most at 28 percent. The other two companies, which include a blood test developer and a stent maker, were down as much as 9 percent.
Here’s a look at how the companies fared:
LOMBARD MEDICAL INC.
The maker of blood vessel stents raised $55 million after pricing 5 million shares at $11 per share. At the end of March, the Irvine, Calif., company expected to raise between $54.5 million and $65.5 million by offering 3.6 million shares priced between $15 per share and $18 per share. The company plans to use the case raised to hire more people in the U.S. and for stent development. Shares of Lombard are trading on the Nasdaq exchange under the symbol “EVAR.” They fell $1, or 9.1 percent, to close at $10.
The blood test developer raised $40 million after pricing 5 million units at $8 per unit, which includes a warrant to buy 0.8 of each share within 30 days for $8.80 per share. The units are trading on the Nasdaq exchange under the symbol “QTNTU.” The units will be delisted 30 days after the IPO and shares will begin trading under the symbol “QTNT.” Earlier this month, the company expected to price shares between $14 and $16, but lowered the price twice. The Edinburgh, Scotland-based company plans to use the money raised to convert a facility in Switzerland it recently rented to manufacture its products. Quotient’s units fell 55 cents, or 6.9 percent, to close at $7.45.
The New York company makes an app for mobile phones and tablets that rewards users for watching TV shows or listening to music. Users get points that they can collect and redeem for store discounts, gadgets or T-shirts. It makes money through advertising. The company raised $35 million after pricing nearly 4.4 million shares at $8 per share. In March, the company expected to raise $50 million by offering 2.1 million shares at $23.50 per share. Viggle plans to hire more people and pay down debt with the money it raised. Shares of Viggle are trading on the Nasdaq exchange under the symbol “VGGL.” They fell $2.25, or 28.1 percent, to close at $5.75.