Two IPOs opened for trading today, with varying results.
After pricing above the range, Vitamin Shoppe (VSI) traded up in its IPO debut. A leading specialty retailer and direct marketer of nutritional supplements, the company raised $155 million by offering 9.1 million shares at $17 each, above the $14-$16 range, on Tuesday. JPMorgan, BofA Merrill Lynch and Barclays were the bookrunners on the deal. The stock was up over 15% in early trading on the NYSE, but slipped during the day to end up almost 6%. The company initially filed for an IPO almost two and a half years ago, before the IPO market virtually shut down for consumer-oriented companies in early 2008. It is the first traditional retailer to go public in the US since agricultural/construction equipment provider Titan Machinery (TITN) did so in December 2007.
In contrast, Addus HomeCare (ADUS) priced below its range and broke its IPO price on its first day of trading. The company, which provides home-based personal care, skilled nursing and rehabilitative therapies, raised $54 million by offering 5.4 million shares at $10.00, below its expected $11.00 to $13.00 range. The 5.4 million shares priced were slightly above its expected 5.0 million share offering. Robert Baird, Oppenheimer & Co. acted as lead managers on the deal. The stock opened below its offer price in its NASDAQ debut, and fell further throughout the day, closing down over -15%.
AEI (AEI), which operates power and natural gas infrastructure in Latin America, Europe and Asia, is expected to begin trading Friday. The week's largest offering, the company plans to raise $750 million by offering 50,000,000 at a price range of $14.00 to $16.00. At the mid-point of the proposed range, AEI will command a market value of $3.9 billion. Goldman Sachs, Credit Suisse, and Citi are the lead underwriters on the deal.
