FleetCor shares rise in debut, other IPOs drab

NEW YORK (Reuters) - Shares of a payments provider and communications company rose in their stock market debut on Wednesday while shares of a forex trader and of a commercial real estate financier fell.

Shares of FleetCor Technologies Inc FLT.N, which sells payment cards and services to commercial fleets and oil companies, closed at $27.25, 18.5 percent above their $23.00 IPO price. Shares of RigNet Inc RNET.O, a company that provides communications services for the oil and gas industry, closed up 4.6 percent at $12.55 vs their IPO price of $12.

Shares of GAIN Capital Holdings Inc GCAP.N, which provides an online platform for foreign exchange trading, closed at $8.85, or 1.7 percent below their $9.00 IPO price, while shares of Walker & Dunlop Inc WD.N, which originates and sells loans through Fannie Mae FNMA.OB, Freddie Mac FMCC.OB, Ginnie Mae and the Federal Housing Administration, closed at $9.90 or 1 percent below their $10.00 IPO price.

FleetCor, GAIN Capital and Walker & Dunlop are trading on the New York Stock Exchange. RigNet is trading on the Nasdaq.

Bankers typically try to price U.S. IPOs so that the stock will rise between 10 percent and 20 percent on the first day of trading and rise gradually, afterward. The 10 percent to 20 percent first-day pop insures that most of the money raised in the IPO goes to the company and selling shareholders but investors are still rewarded for taking a risk on a new issue.

So far this year, U.S. IPOs have posted average first-day gains of 7 percent and year-to-date returns of 19.6 percent, according to data from Connecticut-based IPO investment firm Renaissance Capital.

FleetCor, which raised $291.5 million in its IPO and whose backers include Summit Partners and Bain Capital, sells payment cards and services to commercial fleets and oil companies including BP Plc BP.L, Chevron CVX.N and Citgo PDVSAC.UL.

Its net revenue grew to $327.3 million in the nine months ended September 30, 27.5 percent above where it was in the year-earlier period. Net income rose 41 percent to $90.4 million on the same basis.

Underwriters on the FleetCor IPO were led by JPMorgan and Goldman Sachs. Underwriters on the Walker & Dunlop IPO, which raised $100 million after pricing shares 33 percent below the midpoint, were led by Credit Suisse, Keefe Bruyette & Woods and Morgan Stanley. GAIN’s IPO, which raised $81 million -- 47.4 percent less than planned -- was led by Morgan Stanley and Deutsche Bank Securities. Underwriters on the RigNet IPO, which raised $60 million -- 20 percent less than planned -- were led by Deutsche Bank Securities and Jefferies & Co.

Reporting by Clare Baldwin, editing by Gerald E. McCormick and Matthew Lewis