More IPOs Face Tough Market
The IPO market continued to face tough times this week, with three offerings priced at the low-end of their ranges despite paring back the size of the deal; and one was cancelled outright.
Graham Packaging sold 16.7 million shares at the low end of its twice-revised price range at $10.
Backed by private equity firm Blackstone, the plastic product supplier had cut its deal size in half, lowering its price range twice in two days with Blackstone scrapping plans to sell some of its own shares to get the deal done.
Venture capital-backed QuinStreet raised $150 million to use for working capital, capital expenditures, acquisitions and debt repayment.
While the Internet media and marketing company earned 23 percent of its revenues from only three customers in the first half of fiscal 2010, the business said in its roadshow it expects annual revenue growth of 15 to 20 percent.
Advised by investment banker Frank Quattrone, the IPO priced at $15 per share on Wednesday, well below its already-downward revised range of $17 to $19.
Power generator manufacturer Generac Holdings raised $244 million in its IPO at $13 per share. Backed by PE firm CCMP Capital Advisors, which did not plan to sell any of its shares, the company sold less stock than the 20.3 million planned at the low-end of its $15 to $17 price range.
JinkoSolar failed to price its IPO Tuesday and shelved its offering, citing poor market conditions.
The Chinese solar company had hoped to sell 10.6 million American Depositary Shares for $6 to $8 each, after shrinking the size of its IPO by almost a third.