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IPO Outlook: 
Sealy Prices Above the Revised Range
Author: Yordanka Bahchevanska
123jump.com
Last Update: 5:40 PM EDT April 09 2006


Seven companies priced shares during the week. The healthcare services provider Visicu has received warm welcome from the investors, but they have remained cautious about the IPO from the well-known brand name Sealy.

 
59 initial public offerings have been priced so far this year as of Apr 7, 2006:

- 40 IPOs are currently trading above initial offering price;
- 18 are trading below the offering price;
- and 1 is trading at its offer price.

Seven IPOs were priced during the week of April 3rd, 2006. There are four deals scheduled to be priced during the coming week, hoping to raise nearly $250 million.

IPO PERFORMANCE

ADVANCERS:

Bedding products maker Sealy Corp. (ZZ: chart) priced 28 million shares at $16 each on Thursday. The company originally planned to sell 20 million shares within a price range of $14 - $16 per share. The deal was worth $448 million.

Selling stockholders offered 8 million from all the shares. In addition, the stockholders have granted the underwriters a 30-day option to purchase up to 4.2 million additional shares of common stock from them.

Following this offering, Sealy will remain majority- owned by an affiliate of Kohlberg Kravis Roberts (KKR: chart).

Citigroup, Goldman Sachs, J.P. Morgan and Banc of America were the lead managers of the offering.

Sealy is the largest bedding manufacturer in the world with sales of $1,469 million in 2005. The company manufactures and markets a broad range of mattresses and foundations under the Sealy, Sealy Posturepedic, Stearns & Foster, and Bassett brands.

The company’s shares closed at $17.50 on Friday, up 9.4% from the initial offering price.

Visicu, Inc. (EICU: chart) priced 6 million shares at a price of $16.00 per share on Wednesday, above the expected range of $13 - $15. The company originally has planned to sell its shares within a price range of $11 - $13.

In addition, the company has granted the underwriters an option to purchase up to 900,000 additional shares to cover over-allotments.

Morgan Stanley was acting as the lead manager for the offering. Wachovia Capital Markets, Thomas Weisel Partners and William Blair were acting as co-managers.

Visicu is a healthcare information technology and clinical solutions company focused on transforming the delivery of hospital-based critical care through its eICU Critical Care Program.

The company’s shares closed at $22.96 on Friday, up 43.5% from the initial offering price.

Goodman Global, Inc. (GGL: chart) priced 23.5 million shares of its common stock at a price of $18.00 per share on Thursday, at the high end of the expected range of $16 - $18.

In the offering, 20.9 million shares were sold by the company and 2.6 million shares were sold by the selling shareholders, which include an affiliate of Apollo Management.

In addition, the selling shareholders have granted the underwriters a 30-day over-allotment option to buy up to 3.5 million additional shares.

J.P. Morgan, Merrill Lynch and Goldman Sachs acted as lead managers for the offering, and Credit Suisse, Deutsche Bank Securities, Lehman Brothers and KeyBanc Capital Markets acted as co-managers.

Goodman is the second largest domestic manufacturer of heating, ventilation and air conditioning products for residential and light commercial use based on unit sales.
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