Shares in US private equity giant Apollo Global Management have dropped in value during its first day of trading on the New York Stock Exchange.
Shares in the firm, which were priced at $19 apiece, the top of its indicative range, dipped by 4.2 per cent to close on $18.20 yesterday, potentially giving pause to other private equity firms considering a move to public markets, who will be observing Apollo’s progress closely.
The muted performance is in contrast to Chinese internet company Qihoo 360 Technology, another business which listed in New York yesterday. Qihoo shares launched at $14.50 each, which rocketed up over the course of the trading day to close on $34.
Private equity has had a tumultuous ride on public markets, with fellow New York megafirm Blackstone’s shares falling from over $35 a share when it first listed in June 2007, to under $4 in February 2009. The firm’s shares are currently trading at over $18 apiece, while KKR shares closed at $16.82 each yersterday.
Other firms said to be considering an IPO include Carlyle and turnaround specialist Oaktree Capital Management.
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