NEW YORK — Soccer club Manchester United's flat debut on the New York Stock Exchange on Friday ended a rocky but busy week for initial public offerings.
On Tuesday, Outback Steakhouse's parent company priced its IPO below expectations, and the owner of the Carl's Jr. fast-food chain postponed its planned stock offering Thursday night. It added up to an anticlimactic ending to the busiest week for major IPOs since Facebook's problem-plagued debut in May.
Investor reaction to the debuts shows they are pushing back on pricing and staying cautious if the company's finances are questionable. But if the price is right and the company is solid, investors are willing to buy.
After a five-week lull following Facebook's IPO, have been 22 initial public offerings since the last week in June. Of those, 17 are now trading above their IPO price.
"The greed factor is back," said Francis Gaskins, president and editor of IPODesktop.com. But investors are being cautious about which companies to buy into, he said. "When you have big leveraged buyouts with a big brand, they have to show bottom-line profit," to succeed.
Since Facebook's debut in May, investors are increasingly demanding lower stock prices. Ten of the last 11 IPOS have priced below their expected range, said Nick Einhorn, an analyst at research firm Renaissance Capital.
Facebook shares began trading publicly on May 18 at the top of their projected IPO range, but ended up closing barely above their IPO price at $38.23 and have fallen sharply since then.
Facebook's shares closed Friday at $21.81, down 43 percent from their IPO price.
Investor reaction to the debuts shows they are pushing back on pricing and staying cautious if the company's finances are questionable.