Rail Vision’s stock opens well below IPO price, and keeps falling

Rail Vision Ltd. received a very cool reception on Wall Street, as the Israel-based railway-safety technology company’s shares opened 24% below the initial public offering price, then kept falling. The company raised $15.6 million in the upsized IPO, as it sold 3.79 million share units at $4.13 each, which was the bottom of the expected range, with each unit consisting of one ordinary share and one warrant to buy one ordinary share at an initial exercise price of $4.13. The company had said last week that it expected to offer up to 3.55 million share units at a price of between $4.13 and $5.87 per unit. Aegis Capital was the sole book-running manager. Rail Vision recorded a net loss of $5.13 million on revenue of $417,000 during the six months ended June 30, 2021, after a loss of $5.07 million on no revenue a year earlier. The Nasdaq-listed stock’s first trade was at $3.14 at 11:10 a.m. Eastern for 144,848 shares, and that price remained the intraday high. The traded as low as $2.45, or 40.7% below the IPO price, before paring some losses to be down 35.0% in afternoon trading, enough to make it the Nasdaq’s biggest loser. The company has gone public at a time of relative investor disdain for IPOs, as the Renaissance IPO ETF has tumbled 23.0% year to date while the S&P 500 has slipped 3.8%.

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