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Pricing pressure produces positive performance for Bloomin' and Peregrine
By: Renaissance Capital
Outback Steakhouse operator Bloomin' Brands (
) and fabless chip provider Peregrine Semiconductor (
) 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).