NEW YORK (Reuters) – Two new stocks debuted on U.S. exchanges on Thursday following their initial public offerings, with one barely rising and the other plunging.
Mistras Group Inc (MG.N), which evaluates the structural integrity of public and private infrastructure, closed the day up 0.64 percent, or 8 cents, at $12.58 on the New York Stock Exchange in its first session after an IPO that priced below expectations.
Shares of Biotech company Omeros Corp <OMER.O, which makes central nervous system anti-inflammation products, fared worse, falling 12.7 percent, or $1.27, to close at $8.73 on Nasdaq, in the third worst first-day performance of the year by a U.S. IPO.
Its shares had priced at $10 per share, at the bottom of the estimated range on Wednesday, and raised $68.2 million. Omeros’ fall showed that while investors may be returning to the IPO market, many are still avoiding companies that don’t have any products in the market.
Omeros, based in Seattle, was the first biotech company in two years to attempt an IPO without any products approved yet for commercial use by the U.S. Food and Drug Administration and without any revenue from product sales.
The other small capitalization biotech company to go public this year, Cumberland Pharmaceuticals Inc (CPIX.O) markets and sells a treatment for pain reliever-induced poisoning as well as a laxative.
Mistras sold 8.7 million shares in the IPO and raised $108.75 million. Of those, 2 million were sold by existing shareholders, including executives and private equity funds affiliated with Altus Capital Partners Inc.
The company, whose clients include Pfizer Inc (PFE.N) and Exxon Mobil Corp (XOM.N), saw revenue rise 37.3 percent to $209.1 million in fiscal 2009, with net income of $5.5 million. (Reporting by Phil Wahba, editing by Gerald E. McCormick, Tim Dobbyn, Leslie Gevirtz)