WASHINGTON (dpa-AFX) - Shares of ADT Inc. fell below its initial public offering price in early trading on Friday.
ADT shares is currently trading at $12.52, down 11% from the company's IPO price of $14 a share. ADT had priced its IPO sharply below its expected range on Thursday. The company had initially expected to price between $17 and $19. However, the IPO was priced at $14, which was expected to one of the biggest IPO's of the year.
ADT started trading as a public company Friday on the New York Stock Exchange under the symbol ADT.
According to WSJ, the IPO was priced below its expected range due to potential investors being concerned about the company's ability to retain customers and attract new ones amid competition from new entrants including the video-doorbell company Ring.
ADT raised roughly $1.6 billion in the IPO, giving it a valuation of about $10.6 billion, not including about $10 billion in debt, according to regulatory filings.
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