Hat Tip to the WSJ
Hospital-revenue manager Accretive Health Inc.’s IPO was rising in its first day of trading, while Internet marketing-service firm ReachLocal Inc.’s initially dropped only to recover and trade higher.
Both companies cut their prices to get their initial public offerings done, an increasingly common trend this month amid widespread stock volatility.
Accretive opened at $12.74 a share on the New York Stock Exchange, up 6% from its IPO price of $12. A total of 10 million shares, 3.3 million less than originally planned, were sold at a price below its expected $14 to $16 range. Accretive continued to rise; it was recently changing hands at $13.54, up 13%.
ReachLocal initially traded down but bounced back above its IPO price. It opened at $12 a share on the Nasdaq Stock Market, down 7.7%, and was recently at $14.70, up 13% from its IPO price of $13. It sold 4.2 million shares below its expected range of $17 to $19.
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