Shares of Fabrinet, a maker of components for optical communications systems, are rising after its initial public offering priced below expectations.
The company, which is based in the Cayman Islands raised $85 million by selling 8.5 million shares at $10 each. The expected range was $12 to $14. Fabrinet will receive only $26.3 million in proceeds, since stockholders sold two-thirds of the shares in the offering.
Companies and underwriters have been frequently forced to cut prices on IPO shares this year to get deals done in a volatile stock market.
Trading on the New York Stock Exchange Friday under the symbol "FN," Fabrinet shares are rising 79 cents, or 7.9 percent, to $10.79 in morning trading.
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