Forget Ferrari. The IPO market has resumed price-cutting frenzy

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The IPO market now

I have said all week the Ferrari IPO, which priced at the high end of the price talk, was an anomaly. The IPO market is suffering from a large number of withdrawals and postponements, and those that have priced recently are typically roughly 20 percent below the midpoint of the price talk.

That trend is continuing this morning. Two companies priced overnight, and look what happened.

Multi-Packaging Solutions (MPSX): packaging primarily for consumer and health care products

  • Price talk: 18.75 million shares at $15 to $17
  • Priced at: 16.5 million shares at $13

Dimension Therapeutics: liver disease treatments

  • Price talk: 5.5 million shares at $14 to $16
  • Priced at: $13

And earlier this week, look what happened to American Farmland, a farm REIT that owns property California, Illinois and Florida that began trading on Tuesday:

American Farmland: farmland REIT

  • Price talk: 12 million shares at $8.50 to $10.50
  • Priced at: 6 million shares at $8, opened at $7

Ouch! Not only did all three price below the range expected, but two of them lowered the amount of shares offered!