NEW YORK (CNN/Money) - The long-awaited initial public offering of CIT Group Inc., the financial services unit of troubled Tyco International Ltd., tumbled more than four percent in its first day of trade on the New York Stock Exchange Tuesday.

Shares of CIT (CIT: Research, Estimates) closed Tuesday at $22, off $1 from its $23 offer price, technically making the IPO a broken deal.

The CIT offering came in below expectations Monday when it raised $4.6 billion by selling 200 million shares below their $25-to-$29 target price range via co-lead underwriters Goldman Sachs and Lehman Brothers.

The issue brought in only half of what Tyco spent last year when it paid $9.2 billion in stock and cash for the diversified commercial lender.

At $4.6 billion, the IPO ranks as the fourth-largest U.S.-based offering, according to Dealogic, a New York-based investment banking firm. Floating such a large IPO in a down time for new issues is a "feat right there" for Goldman Sachs, which is book runner on the deal, said John Fitzgibbon, editor of the newsletter IPO Desktop.

The broad market continued to drop Tuesday. According to preliminary numbers, the Nasdaq composite index lost 46.00 to 1,357.80, off about 3.2 percent and near its lowest point of the day. The Dow Jones industrial average tumbled 102.04 to 9,007.75, more than 1 percent; it was down as much as 149 points. The Standard & Poor's 500 index lost 20.72 to 942.93, down about 2 percent.

On Monday, the Nasdaq, a barometer for new issues, closed at a five-year low .

"Goldman had to price CIT to sell," Fitzgibbon said. "It's probably the worst market they could pick in years."

The offering also received an "underweight" rating from analyst Kenneth Posner of Morgan Stanley. "We believe credit quality concerns linger for CIT, wide debt spreads pose a competitive issue, and returns appear unsustainable," Posner said.

Morgan Stanley is not part of CIT's syndicate of investment banks, which includes Banc of America Securities, J.P. Morgan and Credit Suisse First Boston, according to a regulatory filing.

With about $48 billion of managed assets, New York-based CIT offers loans and leasing to both businesses and consumers. It had a $4.1 billion loss for the six months ended March 31, compared with $320.2 million in income a year earlier, according to the regulatory filing.

Parent Tyco will use proceeds from the sale to pay down $27 billion in debt. Tyco will not hold any shares in CIT and will not have any representation on its board, the company's filing said.

Problems at Tyco have blurred perception of the IPO, analysts have said. Tyco's former CEO, Dennis Kozlowski, was indicted in June on charges he conspired to avoid paying more than $1 million in sales tax on artwork he purchased. Kozlowski pleaded innocent last week to additional charges he tampered with evidence in the case.

Shares of Tyco (TYC: down $1.10 to $12.65, Research, Estimates) dropped more than seven percent Tuesday in New York Stock Exchange trading.