The initial public offering market (IPO) continues its broad retreat. Thursday night, alternative asset manager Ares Management (ARES) priced at $19, well below the $21-$23 price talk...but opened at $18.15! Meanwhile, pizza chain Papa Murphy's (FRSH) priced at $11, the low end of the range.
Aldeyra Therapeutics, a clinical-stage biotech developing treatments for rare skin and eye diseases, raised $12 million by offering 1.5 million shares at $8, below the price talk of $10 to $12.
So far, all 19 of the IPOs priced since April 10 have fallen below the mid point of their ranges, according to Renaissance Capital. Almost three-fourths (or 14 of the 19) priced below their ranges.
The bottom line: public offerings have shifted from a sellers market to a buyers market.