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Princeton IPO breaks
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June 19, 2001: 5:54 p.m. ET
New issue from test prep services provider falls 14% on first day
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NEW YORK (CNNfn) - The initial public offering from Princeton Review Inc., a provider of test preparation services, fell nearly 14 percent in its first day of trade Tuesday.
Shares of Princeton Review hit a high of $11.10 but then dropped and never traded above its $11 offer price. The IPO eventually closed at $9.50, making it a "broken" deal.
New York-based Princeton Review (REVU: Research, Estimates) sold 5.4 million shares at $11 each late Monday, the bottom of its $11-to-$13 price range, via lead under writer J.P. Morgan Chase.
Princeton Review provides online and print products, as well as classroom instruction, to help students prepare for exams such as the SAT, the GMAT and the LSAT. Princeton's main competition comes from Kaplan Inc., also a provider of test prep services. The company also receives fees from the books and software it authors which are published by Random House Inc. After the IPO, Random House will hold a near 11 percent stake.
The Princeton IPO is the second offering to begin trading this week. Statoil ASA (STO: up $0.15 to $7.62, Research, Estimates), a Norwegian oil and gas company, made its debut Monday both on the Oslo Stock Exchange and on the New York Stock Exchange. 
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