Last week, Intrepid Potash Inc. (NYSE: IPI) went from a hot IPO to a scorcher in the agriculture and fertilizer sector. That was after the price target and share offering were hiked considerably. The original range was $24.00 to $26.00 for 24 million shares. Then the range went to $27.00 to $29.00 for 30 million shares.
Now this IPO has priced 30 million shares at $32.00 per share, and it is probably safe to assume that the 4.5 million shares earmarked for the overallotment will be exercised.
Goldman Sachs, Merrill Lynch, and Morgan Stanley were the final joint-book running managers of the offering with RBC Capital Markets and BMO Capital Markets Corp. listed as co-managers in the deal.
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Last night on CNBC’s MAD MONEY, Jim Cramer came out with his own play book for this hot IPO. While we do not like seeing IPO’s get touted like this before they even come public, he did at least note the cautious side of the trade as well rather than all bullish calls.
The first indications seen this morning were around $40.00, although this can easily go higher or lower by the time this one actually opens.
Jon C. Ogg
April 22, 2008
Jon Ogg is a producer of and editor for both the Special Situations newsletter and the "10 Stocks Under $10" weekly newsletter for 247WallSt.com; he can be reached at firstname.lastname@example.org and he does not own securities in the companies he covers.