On TeleNav’s opening day on the stock market, its shares were up nearly 30 percent, but the company had to slash its expectations in order to get the deal done.
The Sunnyvale, Calif.-based company, which is now trading on the Nasdaq under the symbol TNAV, dropped its IPO price to $8 from last week’s estimate of $11 to $13 apiece, according to a document filed with the SEC. TeleNav (NSDQ: TNAV) and some of its shareholders sold 7 million shares to raise a total of $56 million, according to the AP. TeleNav’s shares are up around $2.12, or about 26 percent, to $10.12.
Not only did TeleNav face a tough stock market for its debut, but it also is contending with much larger companies that are giving away turn-by-turn mapping services on the phone for free. On Tuesday, Microsoft (NSDQ: MSFT) was the latest to announce a free application that would be available on Windows Mobile handsets. It follows both Google (NSDQ: GOOG) and Nokia.