We are seeing some active trading in the stocks which raised capital via secondary offerings today. These are all down except for one and today’s hopper has Ameriprise Financial Inc. (NYSE: AMP), ATP Oil & Gas Corp. (NASDAQ: ATPG), LM Ericsson Telephone Co. (NASDAQ: ERIC), Marshall & Ilsley Corporation (NYSE: MI), and Vulcan Materials Company (NYSE: VMC).
Ameriprise Financial Inc. (NYSE: AMP) priced a 36 million share secondary offering of common stock at $25.00 per share. That $900 million gross amount of proceeds compares to a market cap of roughly $5.4 billion before the offering. Shares are down about 4% at $24.65. Its 52-week trading range is $11.74 to $49.76, but this was a $30 stock just last week.
ATP Oil & Gas Corp. (NASDAQ: ATPG) priced its secondary offering of 8.75 million shares of common stock at $8.25 per share after closing at $8.64 yesterday and being north of $9.00 just two days ago.The size of this offering was increased from 7.25 million shares and it held up better than we might have guessed despite today’s drop. Shares are down by 4.5% at $8.25 and its 52-week range is $2.75 to $44.12. Before this offering, we show its market cap was around $300 million.
LM Ericsson Telephone Co. (NASDAQ: ERIC) is down 1% at $9.53, but the drop may be on the Barclays downgrade as this is a refinancing of a bilateral loan with the Swedish Export Credit Corporation and partially backed by the Swedish Export Credit Guarantee Board. It intends to use the proceeds of the offering to refinance bonds maturing within the current and next year and for general corporate purposes. We say the downgrade has more to do with this than anything.
Marshall & Ilsley Corporation (NYSE: MI) sold 87 million shares of common stock in a secondary offering at $5.75 per share. This is trading above the price of the offering but is off 2% at $6.00 this morning after closing at $6.14 yesterday. Its 52-week range is $2.98 to $29.97 and its market cap before this offering is listed as almost $1.6 billion.
Vulcan Materials Company (NYSE: VMC) is actually a standout stock from the group, odd considering the unusual dividend activity. Its shares are higher after pricing 11.5 million shares of common stock at $41.00 per share. Based on the trading, it is a safe bet that underwriters took the 1.725 million additional shares in the overallotment (Goldman Sachs, Merrill Lynch, J.P.Morgan, and Wachovia). This was a deep discount, but the good news for Vulcan is that shares are up 7.5% at $45.90.
Jon C. Ogg
June 12, 2009