NEW YORK, April 22 (Reuters) - Shares of crop nutrient producer Intrepid Potash Inc (IPI.N: Quote, Profile, Research), which priced above the anticipated range in its initial public offering, soared in early trade on the New York Stock Exchange on Tuesday.
The stock rose $15.90 or 50 percent to $47.90, giving the company a market capitalization of about $3.6 billion.
The 30 million-share IPO sold for $32 per share, according to an underwriter. At $32, the IPO price was $3 above the top of the $27 to $29 forecast range. The offering had already been increased from 24 million shares and had an estimated price of $24 to $26 per share.
Intrepid Potash's bullish move came amid a dearth of new IPOs, with just 25 deals priced in the first quarter, the lowest number since 2003, and 36 companies withdrew or postponed IPOs in the quarter.
Rising demand for grain across the globe, driven largely by the growing needs of developing economies and the increasing use of biofuels, has led to soaring prices.
Farmers trying to boost yields are using more fertilizers, leading to tight global supply conditions for crop nutrients and bumper profits for fertilizer producers.
Shares of North American fertilizer producers have risen dramatically in the last 12 months -- and companies with sizable potash assets have been among the biggest winners in the sector.
Earlier this month, Chinese importers agreed to pay North American and Russian potash exporters more than triple the price they paid a year ago for the agricultural nutrient.
Intrepid Potash accounts for about 1.5 percent of global potash production, with nearly all of its sales in the United States.
Shares of rivals Potash Corp (POT.TO: Quote, Profile, Research) slipped 0.4 percent to C$210.35 on the Toronto Stock Exchange and Mosaic Co (MOS.N: Quote, Profile, Research) eased 0.8 percent to $138.27 on the New York Stock Exchange. - Rueters
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment