Endurance International Group Holdings Inc. (NASDAQ: EIGI) sold 21.1 million shares Friday morning at $12 a share in an initial public offering (IPO). The company offers cloud-based solutions for the small- and medium-sized business (SMB) market.

The company’s share price has dipped more than 7% since the stock went on sale this morning.

The stock went out below its projected price range of $14 to $16 and the number of shares offered dropped from an original plan of about 23.4 million to 22.1 million. The company raised about $253.2 million from the offering. Underwriters have a 30-day option on an additional 3.16 million shares.

While it’s still too early to declare this IPO a bust, it’s not too early to try to figure out why it was received with such caution. The primary reason is probably related to the lack of consumer confidence that has built up over the past several weeks. Small business depends on local customers willing to spend money and that willingness has been challenged by the federal government shutdown and the continuing strife in Washington.

The outlook for the economy is weaker than it was a couple of months ago and that, too, likely weighed on investors considering whether or not to purchase Endurance’s shares. Small businesses are not likely to make the investments needed in cloud services if their business outlook is shaky to grim.

Shares of Endurance are trading down 7.6% in the noon hour on Friday at $11.09.

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