Shares of CIT Group Inc. fell 4% Tuesday, a day after Tyco International Ltd. spun off the finance unit to pay down debt.
CIT Group is parent to CIT Commercial Services, the United States’ largest provider of factoring and related services. The group is a leading, global source of financing and leasing capital and an advisor for companies in more than 30 industries.
The New York-based company's stock, trading under the CIT symbol, declined US$1 in trading Tuesday to close at US$22.00 on the New York Stock Exchange.
Tyco raised US$4.6 billion Monday after 200 million shares were priced at US$23 each in the initial public offering. The windfall was only half the US$9.2 billion that Tyco paid for CIT last year.
Tyco originally hoped to get between US$25 to US$29 per share, or up to US$5.8 billion. But analysts said the CIT IPO was a hard sell because of difficult stock market conditions. Several other IPOs have been postponed recently.
