Investors are showing little interest in commercial real estate financier Walker & Dunlop Inc. after the company’s initial public offering debuted at a lower-than-expected price.
The offer of 10 million shares was priced at $10 per share, undercutting the company’s expected range of $14 to $16, and stalled at $9.91 in morning trading.
The Bethesda company sells commercial real estate loans, particularly for apartment buildings, and services apartment-building mortgages and other commercial real estate financing products.
Walker & Dunlop has said it expects to net up to $89.5 million and that it will use the money to execute its growth strategy, fund working capital needs and for general corporate purposes.
The company trades under the ticker symbol “WD.”