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On April 9, Empire Financial Holdings Co. (AMEX:EFH) hosted a modest IPO, raising $6 million from a one-million-share float on the American Stock Exchange. What happened next surprised some IPO analysts.
Despite pricing at the bottom of its $6 to $8 range, its shares dipped 11% the following morning, opening at $5.30. The stock closed at $5.05 at the end of its first day of trading.
This isn't the way discount brokers' IPOs usually pan out: larger firms usually acquire smaller brokers shortly after they list, potentially generating significant returns for their investors.
Just last week, Ameritrade Holding completed a $1.29 billion acquisition of Datek Holding. Analysts reckon Empire also makes for a strong...