Elster Group, a leading global provider of gas, electricity and water meters, raised $211 million by offering 16.2 million shares at $13, nearly 24% below its proposed range of $16 to $18 per share. The $13 pricing gives the German-based company a market value of $1.3 billion. With roots dating back to 1836, Elster Group is the #2 player in the global metering market, trailing only Itron (NASDAQ: ITRN). It booked almost $1.7 billion in sales over the last 12 months and just over $270 million in operating cash flow (EBITDA). The stock will open for trading on the NYSE under the symbol ELT on Thursday. Deutsche Bank Securities, Goldman, Sachs & Co., and J.P. Morgan acted as lead managers on the deal.
Elster Group became the fourth IPO pricing in what is expected to be one of the busiest weeks of US IPO activity in almost three years. Also expected to price on Wednesday evening is Chinese wind turbine manufacturer China Ming Yang Wind Power (MY). Three more IPOs are scheduled to price Thursday night: student housing REIT Campus Crest Communities (CCG), defense contractor KEWY Holding (KEYW) and Chinese internet content and application delivery service provider ChinaCache International (CCIH). The IPO calendar currently shows another five deals planned for next week.
Despite the pick-up in activity, ipo investors remain discerning. Three of the seven IPOs to price so far in September have done so below the midpoint of their anticipated price range, and property and casualty insurer Liberty Mutual pulled what would have been the largest IPO so far this year ($1.2 billion) earlier on Wednesday, as demand from investors failed to materialize at the company's asking price.
