graphic
News
IPO market fades fast
April 12, 2000: 4:51 p.m. ET

Corillian fails to catch fire and becomes the latest IPO to disappoint in debut
graphic
graphic graphic
graphic
NEW YORK (CNNfn) - Corillian Corp Wednesday became the third company this week to tread water in its first day of trading, sparking fears that the white-hot initial public offering market has finally cooled.
    After being lower for most of the day, shares of Corillian (CORI: Research, Estimates), which provides Internet services to financial companies, rose 1/2 to 8-1/2. That's slightly above its $8 offering price late Tuesday but well below analysts' expectations.
    "There is some weakness out there," said Jeffrey Hirschkorn
    senior market analyst at IPO.com "They are not impervious to this market turmoil."
    The market turmoil comes as the Nasdaq composite index plunged more than 600 points this week.
    graphicIn recent years, the strength of the IPO market has tracked the Nasdaq. Initial public offerings raised more than $69 billion in 1999, a record that came as the Nasdaq jumped 85 percent. But IPO demand has slackened as investors this month unloaded tech stocks, betting their sky-high prices don't reflect their growth prospects.
    Two other offerings, DDI Corp. (DDIC: Research, Estimates) and Healthstream Inc. (HSTM: Research, Estimates) fell from their offering prices Tuesday.
    "We are seeing a definite change in market sentiment," said David Menlow, president of IPOfinancial.com. He sees the slump lasting until mid-May.
    And the recent turmoil has meant underwriters cheapening their offering prices or postponing deals altogether. Credit Suisse First Boston Tuesday put the offering of Drugabuse Sciences Inc. on the back burner.
    "You're going to start seeing that the IPO market will get more selective," IPO.com's Hirschkorn said.
    Deals like AT&T's spin-off of its wireless unit should draw big demand, as will next week's IPO of Alta Vista, the search engine, Hirschkorn said.
    But less-known more speculative names may not be as well received.
    And just Tuesday Bookham Technology (BKHMV: Research, Estimates), which designs which designs optical components for fiber-optic networks, more than tripled in its market debut. Back to top

  RELATED SITES

CNNfn's IPO calender

IPO.com

IPOfinancial.com

Latest upgrades

Latest downgrades

Initiated coverage

Stock split calendar

IPO's

Earnings warnings

Economic calendar

View the latest market update via Netshow

See how your mutual funds are doing

Need investing advice? Try Quicken.com on fn

Track your stocks


Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney




graphic

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.