Pre-IPO demand was high for the initial public offering for Allscripts (Nasdaq: MDRX), which offers medication management and distribution solutions for doctors. The company priced 7 million shares at $16, above its revised range of $13 to $15 and well above the original range of $10 to $12. With this much interest, and Goldman Sachs as the lead underwriter, many investors expected a big pop similar to what happened to InsWeb.
It didn’t happen. Allscripts closed up 2-3/4 to 18-3/4, a decent gain of more than 17 percent, but this was nothing like what many expected. This, of course, may say more about the lofty expectations of investors than anything else.
One possible problem with the Allscripts IPO is that it wasn’t priced until Friday morning and didn’t open until the afternoon. By that point, many traders may have already gone home for the weekend.