Despite Price Cuts, Motricity’s Stock Drops On First Day

Motricity

Motricity ended up pricing its initial public offering at $10 a share, instead of the $14 to $16 it hoped to get just 16 days ago — but its stock nevertheless dropped 7 percent on its first day of trading on the Nasdaq, closing at $9.26. (By contrast, the Nasdaq stock market increased 0.11 percent today).

At $10 per share, Motricity raised about $60 million in its IPO. That has to be a disappointment to Motricity executives considering they said they hoped to raise up to $250 million when the company filed for its IPO in January. Nevertheless, the company did go public, something it had been promising it would do since 2004. Many other companies in our realm that have filed to go public in recent months — Reply.com, Eyeblaster, Everyday Health, to name a few — seem to be waiting for market conditions to improve.

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