Deals May Strain On Refco News;

Pricing reductions for IPOs reflect markets not offerings

NEW YORK, June 2 (Reuters) - A slumping stock market, not the "poor" debut of Vonage Holdings Corp. (VG.N: Quote, Profile, Research), has taken the air out of the U.S. initial public offering market, analysts said on Friday.

In the last two weeks, four of the seven companies that had IPOs lowered their price ranges after shares of Vonage slid nearly 13 percent in the worst opening-day performance of the year.

The internet telephone service provider's shares closed on Friday at $11.98 each, down $5.02 from their $17 offering price.

But analysts contend the IPO malaise is a just a reflection of the broader markets, not individual bombs, with May being the worst month for the Nasdaq Composite since July 2004.

"There was just an upswing in the market in March and April, but then the air went out," said Francis Gaskins, an independent analyst and president of IPO Desktop, a Marina del Rey, California-based research firm.

"Expected prices were set when the market was more active and reflected that enthusiasm."

The slumping Nasdaq, which saw a 6.2 percent decline in May, was the chief culprit behind the lowered forecast prices this week, Gaskins said.

"Investors have drawn back from the table and are no longer eating from the IPO plate," Gaskins added. "But at the right prices, they'll be back.

Each of the companies that debuted on the Nasdaq this week lowered their expected price range before coming to market.

Medical device maker Alphatec Holdings Inc. (ATEC.O: Quote, Profile, Research), Russian TV network CTC Media Inc. (CTCM.O: Quote, Profile, Research), fitness club operator Town Sports International Holdings Inc.(CLUB.O: Quote, Profile, Research), and molecular technology company Luna Innovations Inc. (LUNA.O: Quote, Profile, Research), all lowered their forecasts before coming to market.

"Vonage was a singularly poor offering that should not have gone public," said David Menlow, president of New Jersey-based IPOFinancial.com. "But they haven't poisoned the IPO well to the point where people are not buying offerings."