Pactiv Evergreen’s stock stumbles out of the gate, as first trade is about 9% below IPO price

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Shares of Pactiv Evergreen Inc. stumbled out of the gate Thursday, as their first trade was 8.9% below the initial offering price of $14 share. The first trade was at $12.75 at 10:50 a.m. Eastern for 2.3 million shares. The pricing late Wednesday was well below the expected range of $18 to $21 share. The stock has fallen further since it opened to be down 19.6%. The Illinois-based food packaging company raised $574 million in the IPO and was valued at about $2.46 billion at the IPO price. The tepid investor response to Pactiv going public came despite an otherwise good week for IPOs, as witnessed by Snowflake Inc.’s stock closing Wednesday at more than double the IPO price. The Renaissance IPO ETF has rallied 21.8% over the past three months, while the S&P 500 has gained 8.2%.
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