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Pricing pressure produces positive performance for Bloomin' and Peregrine

By: Renaissance Capital
Posted: 8/9/2012 12:11:00 PM
Referenced Stocks: BLMN;GMED;PSMI

Outback Steakhouse operator Bloomin' Brands ( BLMN ) and fabless chip provider Peregrine Semiconductor ( PSMI ) continued the trend of producing positive returns after pricing below the midpoint of their proposed ranges. Both companies offered investors a healthy first day pop on Wednesday (+13% for BLMN and +5% for PSMI) and continued to trade up Thursday morning (an additional +5% for BLMN and +3% for PSMI).

On Friday, spine implant vendor Globus Medical ( GMED ) also traded up 13% on its debut after pricing 30% below the midpoint of its originally proposed range.

Of the last nine IPOs, eight have priced below the midpoint, but the majority have produced positive first day returns (+4.7% on average) and aftermarket returns (+3.6% on average).