Rail Vision stock opens well below the IPO price and continues to fall

Rail Vision Ltd. RVSN, -28.57% received a very chilly reception on Wall Street as shares of the Israel-based railroad safety technology company opened 24% below the initial issue price and then fell further. The company raised $15.6 million in the expanded IPO as it sold 3.79 million units of common stock at $4.13 each, the low end of the expected range, with each unit consisting of one common share and one common stock A warrant to purchase one common share on an initial exercise stock price of $4.13. The company announced last week that it would offer up to 3.55 million shares of stock at a price ranging from $4.13 to $5.87 per unit. Aegis Capital was the only book running manager. Rail Vision reported a net loss of $5.13 million on revenue of $417,000 for the six months ended June 30, 2021, up from a loss of $5.07 million excluding revenue a year earlier. The Nasdaq-listed stock’s first trade at 11:10 a.m. ET was $3.14 for 144,848 shares, and that price remained the intraday high. The price traded as low as $2.45, or 40.7%, below the IPO price before paring some losses to 35.0% in afternoon trade, enough to make it the Nasdaq’s biggest loser. The company went public at a time of relative investor disdain for IPOs, as the Renaissance IPO ETF IPO, -1.53%, is down 23.0% year-to-date, while the S&P 500 SPX, -0.53% fell 3.8%.