ReachLocal shares tumble in IPO debut

NEW YORK (AP) - Shares of online marketing company ReachLocal are tumbling after the company's initial public offering priced below expectations.

Broader markets are also dropping. Accretive Health, another IPO that debuted Thursday, is rising 13 percent, however.

ReachLocal, based in Woodland Hills, Calif., sold 4.2 million shares to initial investors for $13 each, raising $54.2 million. It had hoped shares would fetch between $17 and $19.

ReachLocal Inc. helps small to mid-sized businesses target local customers. It has posted losses for the past three years, and said in a regulatory filing that it expects net operating losses for the "foreseeable future."

Shares of ReachLocal are falling 80 cents, or 6.2 percent, to $12.20 on the Nasdaq under the symbol "RLOC."