Two IPOs Have Subdued Debuts
Dow Jones Newswires</br></br>A slow week for new stock offerings was typified by subdued debuts yesterday from insurance-services company CRM Holdings Ltd. and semiconductor designer Pixelplus Co.</br></br>CRM Holdings, a Bermuda-based company that provides fee-based management services for self-insured groups, closed at $13 on the Nasdaq Stock Market, flat with its IPO price. CRM, which specializes on groups that self-insure for workers' compensation risk, sold 2.85 million shares at the low end of the expected price range of $13-to- $16 set by underwriters Sandler O'Neill and KeyBanc Capital Markets.</br></br>CRM reported total revenue of $31.6 million in the first nine months of 2005, up 31% from the same period in 2004. Its net income was $5.3 million, up 36%.</br></br>The workers' compensation insurance industry is fraught with risk and competition from major insurers. In CRM's case, its operations are concentrated solely in New York and California, while larger competitors offer multistate coverage. An IPO from workers' compensation insurer Amerisafe Inc. in November had a similar tepid reception, closing flat with its offer price, but the stock is currently trading up 10% from its offer price.