: Shimmick Corp. is latest IPO to fail to reach issue price
Shimmick Corp. SHIM, a California construction company that specializes in public water infrastructure, has become the latest company to flounder in its trading debut, even after it downsized its IPO and priced below range. The company’s deal priced at $7 a share on Monday, compared with a proposed price range of $10 to $12. The company offered just 3.6 million shares, or 0.98 million fewer than expected. The stock closed at $6.40 Tuesday in its first day of trade and was recently quoted at $6.50, but has not yet touched its IPO issue price. German sandal and clog maker Birkenstock Holding Plc BIRK has also failed to reach its issue price of $46. That stock was last quoted at $41.04. The IPO market has struggled this year as deal after deal either flops on its first day of trade or gains peter out in the aftermarket. The Renaissance IPO ETF IPO has gained 34% in the year to date, however, outperforming the S&P 500 SPX, which has gained 17%.
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