Over the last two days, initial public offerings (IPOs) have hit a speed bump--again. The market has absorbed more disappointing pricings ahead of what promises to be a huge week.
Pipe maker Advanced Drainage Systems priced 14.5 million shares at $16.00, well below the price talk of $17—$19; biotech firm Ocular Therapeutics priced 5.0 million share at $13.00, well below the price talk of $14—$16. Orion Engineered Carbons (OEC), a maker of carbon black, priced 19.5 million shares at $18, way below the price talk of $21—$24.
However, El Pollo Loco priced 7.1 million shares at $15.00, the high end of the price talk of $13—$15. This is in the hot fast-casual restaurant space, a space Chipotle has inhabited successfully.
Of the 8 IPOs that have priced in the past 36 hours, 6 have priced below the price talk, 1 at the low end of the price talk, and 1 at the high end. That is a disappointment.