Colfax Premium IPO Goes Even Higher (CFX)

Colfax Corporation (NYSE: CFX) is seeing a huge reception after its hot IPO came to market today.  This IPO priced its shares at $18.00 for an amount of 18,750,000 shares.  This was above the $15 to $17 indicated price range.

Of all the shares being sold, 9,039,732 shares were sold by the company and 9,710,268 shares were sold by selling stockholders.  The underwriters a 30-day over-allotment option to purchase up to an additional 2,812,500 shares at the IPO price. 

The company did something smart here as well by having a rather large underwriting group.  The lead underwriters were Merrill Lynch, Lehman Brothers, and UBS Investment Bank; co-managers were Robert W. Baird, Banc of America, Deutsche Bank, and KeyBanc.  Based on today’s move, it looks like those shares will probably be exercised.

The company is involved in critical fluid-handling solutions, including the manufacture of positive displacement industrial pumps and valves used in global oil & gas, power generation, marine, naval and a other industrial applications. Colfax posted net income of $64.9 million on $506.3 million in revenues during 2007.

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Colfax shares are right around $21.00 on more almost 10.7 million shares having traded hands with just over an hour to the close.  Shares did open even higher.  The high print looks to be $24.00, but the highest we saw right after the open was $23.00.

Jon C. Ogg
May 8, 2008