Motricity shares fall in IPO despite price cut

Shares of Motricity fell on Friday, the mobile content solutions provider's first day of trading on the NASDAQ Global Market. Motricity (trading under the symbol MOTR) slipped 7.4 percent to close at $9.26; the firm's IPO offered 6 million shares of common stock priced at $10 per share, down from earlier projections of 6.75 million shares valued at $14 to $16 apiece. "Here we go again with an IPO that was priced rather incredibly low," IPO Boutique senior managing partner Scott Sweet tells MarketWatch. "Investors or traders are basically throwing up their hands and saying, 'Not again.'"

The Motricity IPO included a million shares purchased less the underwriting discount by one or more entities affiliated with billionaire investor Carl Icahn, who already retained an existing 18.5 percent beneficial ownership interest prior to the purchase. The company previously said the proceeds of the IPO are earmarked to fund investments and product/technology acquisitions, with the remaining net proceeds going into short-term, interest-bearing investment grade securities. Motricity's mCore platform offers mobile operators tools to manage their mobile content, web, messaging and marketing efforts. Per an earlier SEC filing, the firm provides mobile data services to more than 30 million subscribers worldwide.

For more on the Motricity IPO:
- read this MarketWatch article

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