Reuters: IPOX® CEO Josef Schuster Comments on Lyntris’ NYSE Debut and Investor Selectivity

Reuters reported that defense contractor Lyntris fell 11.4% in its New York trading debut, giving the company a valuation of approximately $1.78 billion. Lyntris opened at $15.50 per share after pricing its IPO at $17.50, below its initially marketed range of $19 to $22. The offering was also reduced to 17 million shares from 24 million, raising $297.5 million.

IPOX® CEO Josef Schuster provided Reuters with analysis of the market’s reaction to the listing, noting that investors were distinguishing Lyntris’ private equity-backed capital structure from a traditional venture-backed IPO. His comments came as the broader U.S. IPO market has strengthened in recent months while investors remain selective toward newer public companies and some issuers have reduced deal sizes.

Schuster also pointed to higher U.S. bond yields as a factor contributing to weaker demand for riskier, less-seasoned companies, including recent IPOs, despite continued strength in corporate earnings.

“The market is discounting that this is a capital structure, rather than a venture capital deal,” said Josef Schuster, chief executive of IPOX®.

Read the full article by Pritam Biswas and Pragyan Kalita on Reuters: Lyntris valued at $1.8 billion after shares fall in New York debut