It’s expected to be the busiest week for initial public offerings in more than seven years and two companies had successful trading debuts today. Shares of Blackstone-backed hotel operator got off to a bumpy start. The stock fell four percent in early trading after pricing below the expected range. But shares rebounded and the company raised $650 million dollars from the offering. The stock rose a fraction to $17.12.
The IPO of Chinese firm Ikang healthcare rose sharply. It prices its 11 million shares at $14 a piece. Ikang is China’s largest private operator of medical exams and disease-screening centers. The stock surged 8.5 percent to $15.20.
Constellation Brands’ quarterly profits came in better than expected thanks to strong sales of Corona and Modelo Beers in the U.S. But, the company says it will spend over $1 billion, almost double what it expected, to increase capacity at the Mexican brewery. That worried investors and shares fell one percent to $80.64.
Investors soured on shares of Hershey after a downgrade out of Goldman Sachs. The firm lowered its rating on the chocolate maker to “sell” from “neutral” saying its strong run is about to end. The stock fell nearly three percent to $98.91.
Mars & Procter & Gamble
Another candy maker, Mars is buying the bulk of three Procter & Gamble’s pet food brands. Mars already owns some pet care companies, but the new additions of Iams and other brand names will beef up the unit.
Bed Bath & Beyond
Bed Bath & Beyond posted disappointing earnings after the bell. The home-furnishing retailer say sales decrease in the fourth-quarter. Earnings were in-line with estimates, but the company’s revenue missed and its outlook came in weaker than expected. Shares fell initially after-hours. The stock ended the regular trading day up a fraction to $67.91.