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Smith & Wollensky burned
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May 23, 2001: 4:36 p.m. ET
Restaurant firm's IPO drops nearly 9% on Nasdaq debut, raises $45 million
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NEW YORK (CNNfn) - The initial public offering of Smith & Wollensky Restaurant Group Inc. dropped nearly 9 percent Wednesday, breaking the recent string of successful new issues.
Shares for Smith & Wollensky fell by 73 cents to close at $7.77 on the Nasdaq.
The offering came in slightly ahead of expectations late Tuesday, raising $45 million. Smith & Wollensky sold 5.3 million shares at $8.50 each via lead underwriter CE Unterberg Towbin. The restaurant firm had planned on offering 5.05 million shares, up from 5.03 million, at $8-to-$10 each. Smith & Wollensky had expected to sell 4.95 million shares at $7.50-to-$10.50 each.
Miami-based Smith & Wollensky (SWRG: Research, Estimates), famous for its steaks, owns and operates high-end, high-volume restaurants in the United States. The firm operates 14 restaurants, nine of which it owns and five of which it manages.
Smith & Wollensky's lackluster performance follows the strong debut of Peabody Energy Corp., one of the world's largest coal companies, which climbed nearly 31 percent Tuesday. Peabody (BTU: up $1.15 to $37.95, Research, Estimates) also capped a recent string of successful debuts from Instinet Group Inc. (INET: down $0.13 to $20.42, Research, Estimates) which rose 22 percent last week and Global Power Equipment Group (GEG: up $1.15 to $36.70, Research, Estimates), which surged by 57 percent. 
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