Carlyle Capital Corporation Ltd. (CCC) confirmed on Tuesday it had cut the price and the number of shares in its initial public offering (IPO), a move it has put down to headwinds in the market.
The company said it would price its Class B stock at $19 per share, down from $20-$22 initially, raising a reduced $303.5 million.
Trading in the 15.8 million new shares plus a reoffering of 173,200 shares is expected to start on July 4, the affiliate of private equity firm Carlyle Group said in a statement. The company initially planned to issue 18.9 million new shares.
Last week, CCC's chief executive John Stomber told Reuters the company had cut the price and the volume of the offering due to headwinds in the market. It also postponed the issue.
Global market volatility sparked by spreading worries over the U.S. subprime market has led several companies to delay or withdraw planned offerings of shares, bonds or loans.
Private equity giant Blackstone Group LP's shares surged 13 percent at the first day of trade following its IPO, but dropped below the listing price on the third day of trade.