spacetoday.net: ORBCOMM shares drop after debut

Posted: Sat, Nov 4, 2006, 3:27 PM ET (2027 GMT)
Shares in satellite communications company ORBCOMM, the second satellite company in an many days to conduct an initial public offering (IPO) of stock, fell sharply after trading in the company started Friday. ORBCOMM sold over 9.2 shares at $11 each on the Nasdaq on Friday, but the stock price fell during the day, closing at $7.75. The 30-percent drop marks the worst first-day performance by any company that conducted an IPO this year, according to the Wall Street Journal. The ORBCOMM IPO comes one day after Globalstar conducted an IPO; its shares, which rose slightly in trading Thursday, fell below the IPO price of $17/share in Nasdaq trading Friday. Like Globalstar, ORBCOMM is returning to the public markets after filing for Chapter 11 bankruptcy protection. ORBCOMM plans to use the proceeds of the IPO to help fund the development of its next-generation "Little LEO" communications satellite network, used primary for short messaging and similar data services.