Tutoring company Educate
While early buyers-in are congratulating themselves today on a quick 11% gain for one day's work, it's hard to call the IPO, the shares of which began trading at $12.20, a "success." Despite the initial 11% gain, Educate's stock subsequently slid back to $11.99 on an up day for the Nasdaq. So by the end of the day, the share price was still short of the bottom of its already-lowered initial price range.
Worse, for the company itself, Educate wound up leaving $6 million on the table in this deal (5 million shares x ($12.20 - $11.00)). While that may not seem like much in comparison to something like Google's
With luck, though, Educate will soon begin to earn back the cash that slipped through its fingers yesterday. Last year, Educate bought out the Sylvan Learning Centers that Laureate Education
Want to learn more about how the market gives birth to new public companies? Read these Foolish reports on other recent IPOs:
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Fool contributor Rich Smith owns no interest in any of the companies mentioned in this article.