Shares of Carlsmed, Inc. (CARL) plummeted 6.67% during intraday trading on Wednesday, marking a disappointing debut for the medical-technology company following its initial public offering (IPO). The sharp decline comes as a surprise to many investors, given that the IPO was priced at the midpoint of expectations.

Carlsmed, based in Carlsbad, California, had priced its IPO at $15 per share, squarely within the anticipated range of $14 to $16. The company sold 6.7 million shares, potentially raising net proceeds of approximately $88.3 million, or up to $103.3 million if underwriters exercise their option to purchase additional shares. With over 27.5 million shares outstanding after the IPO, Carlsmed's initial market capitalization was set at nearly $413 million.

The significant drop in share price on the first day of trading may indicate that investors are reassessing the company's valuation or expressing concerns about its growth prospects in the competitive medical-technology sector. It's also possible that broader market conditions or sector-specific issues are contributing to the sell-off. As Carlsmed begins its journey as a public company, investors will be closely watching its performance in the coming days and weeks to determine if this initial plunge is a temporary setback or a sign of deeper challenges ahead.