Today could be called IPO Friday. We have four confirmed priced deals, and likely a fifth. The IPO’s involve Berkshire Hathaway Inc. (NYSE: BRK-B) for its Symetra Financial (NYSE: SYA), followed by Cellu Tissue Holdings Inc. (NYSE: CLU), Chesapeake Lodging Trust (NYSE: CHSP), China Hydroelectric Corp. (NYSE: CHC), and Terreno Realty Corp. (NYSE: TRNO). Some of these prices were very lackluster and some were just disappointing considering how much of a bull market we have been in.
When was the last day you saw this many IPOs? I cannot recall either. A brief summary provided for each below.
The most important IPO today may be that of a Warren Buffett company investment via Berkshire Hathaway Inc. (NYSE: BRK-B). Symetra Financial (NYSE: SYA) priced its 20.7 million share stock offering at the bottom of its expected range at $12.00 per share. The range was $12 to $14 per share, but that is 3.4 million shares more than was indicated. Berkshire Hathaway retained its entire stake of the life insurance, medical insurance underwriting services, and retirement products company.
Cellu Tissue Holdings Inc. (NYSE: CLU) sold 8.3 million shares at $13.00 each, under the $15 to $17 price range. However, the size of the IPO was raised. This is not a biotech player; it is a household-paper-products maker. Of the offering some 2.2 million shares were indicated originally to be sold by the company, with insiders selling the rest of the shares. It plans to use the IPO proceeds to lower debt.
Chesapeake Lodging Trust (NYSE: CHSP) 7.5 million shares priced at $20.00 each after the hotel investment company delayed its IPO last month of 12.5 million shares at $20.00 each. Chesapeake now intends to sell as much as $20 million of stock, after the offering to Hyatt Hotels Corp. (NYSE: H) and up to $25 million to an institutional fund. The company also plans to sell a total 150,000 shares to top executives. This is a Hotel REIT.
China Hydroelectric Corp. (NYSE: CHC) raised the size of its pending initial public offering to at least 5 million units, made up of one ADS and one warrant to buy 3 ordinary shares at $15 each… priced at $16.00 per unit. The prior size was 4.4 million units. The warrants will trade under the CHCW ticker. The company was formed in 2006 in the Cayman Islands to acquire small hydroelectric power companies in China and now owns 11 operating power plants. It plans to acquire more operating plants.
Terreno Realty Corp. (NYSE: TRNO) lowered the size of its IPO by one-third to at least 10 million shares, yet the $20.00 per share price is still indicated. This is a newly formed public real estate investment trust.
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JON C. OGG
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