Apollo's Ego Hurt with IPO down 23% in Debut

It's not often that you hear about a losing IPO so I though that I would highlight Apollo's experience with Verso Paper that fell 23% in its market debut today. It was originally priced at between $16 and $18 and ultimately hit the market at $12 and proceeded to fall to a market close of less than $10 per share. That hurts.

Verso Paper, formed by Apollo Global Management in August of last year as part of a spin off from International Paper Co. Producing the thin, but glossy, paper products that are used in magazines, there's not doubt that it's been struggling in recent years. That said, Verso has reported profits for its most recent quarter following significant losses prior. The spin-off, then, seems to have been a prudent move - allowing the new management team to streamline its operations and refocus its business.

Don't worry, Apollo is still making a good buck on the deal. The original price of about $17 per share would have represented a doubling of its investment, so even a valuation at $10 is profitable if not just a little ego-busting. If you'd like to track it going forward, it's on the NYSE under ticker symbol: VRS