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Blockbuster IPO lackluster
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August 11, 1999: 11:26 a.m. ET
Top video rental chain barely budges in first day of trading, after pricing at $15
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NEW YORK (CNNfn) - Blockbuster Inc. wasn't living up to its name on Wall Street Wednesday as shares of the video rental company edged up only slightly after the launch of its initial public offering.
With investors getting more picky about IPOs, shares of Dallas-based Blockbuster, the world's largest video-rental retailer, rose 1/16 to 15-1/16 in the first hour of trading Wednesday.
The video rental chain, controlled by media giant Viacom (VIA), priced 31 million shares Tuesday at $15 each, below an expected $16 to $18 range. Salomon Smith Barney and Bear Stearns were the lead underwriters.
"It's a large offering, so it's going to take a lot to move it," said Steve Lacey, editor of IPO Reporter, noting that 161 IPOs priced from May to July -- a record total for a three-month span. "And it's not the best environment in the world for IPOs."
As for Blockbuster's sluggish open, Lacey said he wasn't surprised. "This is a company in a declining industry, but they are far and away the leader. The fact that it's holding its price, that's a good sign."
Viacom retains more than 80 percent of Blockbuster following the public offering. 
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Blockbuster
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