* Metals USA shares close 8.6 pct below IPO price
* Analysts: investor appetite may have been overestimated
* Tengion IPO closes up 0.4 pct (Updates with closing prices, adds details on Tengion IPO)
NEW YORK, April 9 (Reuters) - Shares of Metals USA Holdings Corp (MUSA.N) closed down about 9 percent on Friday, well below their initial public offering price, and some analysts said the pricing may have been too aggressive.
Meanwhile, shares of biotech company Tengion Inc TNGN.O closed up less than a percent.
Metals USA closed at $19.20 and analysts said the underwriters, led by Goldman, Sachs & Co, Credit Suisse, JPMorgan, Morgan Stanley and Jefferies & Co, may have overestimated investors' appetite for the stock.
"The people who bought it at $21 weren't long-term holders. They decided to sell it. As soon as these things break people are very quick to cut and run," said Morningnotes.com founder Ben Holmes. "It was a very aggressive pricing."
Metals USA is a metals service center and sells processed carbon steel, stainless steel, aluminum, red metals and manufactured metal parts to customers in North America.
The Ft. Lauderdale, Florida-based company on Thursday sold 11.4 million shares for $21, raising about $239.4 million. It had planned to sell about 10.5 million shares for $18 to $20 each.
"They would have been better off leaving more of the money on the table," said Eric Guja, an analyst with Connecticut-based IPO research firm Renaissance Capital.
There was strong interest in the deal, both because of its valuation and because of rising steel prices, Guja said.
Metals USA's original price range put it at a discount to peers like Reliance Steel & Aluminum Co (RS.N), Worthington Industries Inc (WOR.N) and Olympic Steel Inc (ZEUS.O). Its final terms put it in line with Reliance, he said.
The company's net sales fell 49 percent to $1.1 billion in 2009 and net income fell more than 95 percent to $3.5 million. It said demand for steel and other metals fell off sharply in the third quarter of 2008 as the global financial crisis pinched production and companies sought to sell off excess inventory.
Metals USA said proceeds from the IPO will be used to repay 2007 notes and for general corporate purposes.
Metals USA is 93 percent owned by private equity firm Apollo Management LP [APOLO.UL]. Apollo planned to sell 1.6 million shares but was expected to retain just over a 60 percent stake in the company after the IPO, according to the most recent prospectus.
Private equity firms have been taking advantage of improved stock market conditions to take investments public after a long drought.
Tengion closed up 0.4 percent at $5.02. Earlier on Friday Tengion priced shares in its initial public offering below the expected range but sold more shares than anticipated.
The company sold 6 million shares for $5 each, raising about $30 million. It had planned to sell 4.4 million shares for between $8 and $10 each.
The company is working on growing replacement organs and other tissues.
Underwriters were led by Piper Jaffray and Leerink Swann.
Metals USA is trading on the New York Stock Exchange under the symbol "MUSA." Tengion is trading on the Nasdaq under the symbol "TNGN."
(Reporting by Clare Baldwin; Editing by Dave Zimmerman, Tim Dobbyn and Bernard Orr)