Long Beach prescription skin product maker Obagi Medical Products got off to a slow start in its Wall Street debut, with its stock closing lower than the initial public offering Thursday and ending unchanged on Friday.
Obagi, which develops and commercializes treatments for skin conditions such as hyperpigmentation and acne, priced its 5.4 million-share IPO on the Nasdaq at $11 per share. The stock closed more than 8 percent lower at $10.10 on Thursday, after trading as high as $11.40 during the day.
Obagi said it planned to use the proceeds to pay down about $35 million in debt. The funds will also be used for research and development, acquisitions and general corporate purposes. The company gave underwriters the option to buy up to about 802,500 additional shares from stockholders to cover overallotments. JPMorgan was the lead manager. CIBC World Markets, Thomas Weisel and Robert Baird were co-managers.
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