Private Equity Insiders Quickly Selling Out of Recent IPOs

Berry Plastics Group Inc. (NYSE: BERY) has filed to sell 15 million shares tied to Apollo Funds, which owns more than 49.5 million shares. Shares are down 5.6% at $21.00, against a post-IPO range of $13.12 to $24.27. This is close to $315 million in proceeds based on current prices.

Boise Cascade Co. (NYSE: BCC) filed to sell 10 million shares for insiders, or up to 11.5 million if the overallotment option is exercised in full. This is tied to Madison Dearborn, and the fund owns some 29.76 million shares prior to the sale of these shares. Shares are down 1.6% at $27.95, and the post-IPO range is $24.90 to $34.54. This one comes to almost $280 million based on current share prices.

Del Frisco’s Restaurant Group Inc. (NASDAQ: DFRG) is selling 5 million shares for Lone Star Management, tied to John P. Grayken. Shares fell 7% to $20.94 on the news, as the average daily volume is now only about 115,000 shares. Its post-IPO trading range is $11.73 to $23.22. This is more than $100 million based on current prices.

None of these sound like much on the surface. What you have to consider is that when you combine the three, you are sending back some $700 million back to private equity backers without considering any overallotment options.