AGA Medical Debuts During Cautious IPO Market (AGAM)
It was just over the weekend that we noted how cautious the initial public offering market has become. What a difference a couple months can make. Today marks the debut of AGA Medical Holdings, Inc. (NASDAQ: AGAM). The medical devices…
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
The problem with this offering is that this was priced below the revised $15 to $16 per share range, which had already been reduced from a previous range of $19 to $21 per share. BofA Merrill Lynch, Citi, Deutsche Bank Securities, Leerink Swann and Wells Fargo were listed as the joint book-running managers for the IPO. These underwriters have a 30-day option to purchase up to an additional 2,062,500 shares of common stock to cover over-allotments.
For the year ended December 31, 2008 and the six months ended June 30, 2009, respectively, AGA Medical generated revenues of $166.9 million and $94.4 million; and it generated EBITDA of $46.5 million and $17.8 million and net income of $9.1 million in 2008 and a loss of -$4.2 million during the first six-months this year.
AGA Medical is a private equity-backed investment, with Welsh Carson, Anderson, & Stowe and affiliates of the firm. The backers are selling shares, but will still hold a majority if the over-allotment is not taken and will hold about 49.6% of AGA Medical if the over-allotment is taken.
At 11:00 AM EST we have seen some 2.6 million shares trade hands and the stock is up at $14.52 after having seen a post-open trading range of $14.32 to $14.85.
JON C. OGG
OCTOBER 21, 2009
Contact [email protected] for any questions or corrections.
Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.
His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.
A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.