Initial Public Offering Day: SRC, SUSP, CBF, NBHC & TRLA – ValueWalk Premium

Initial Public Offering Day: SRC, SUSP, CBF, NBHC & TRLA

It was a busy day on Thursday for the Initial Public Offering (IPO) marketplace as five companies went public. The big winner was Trulia with its 40 percent jump.

Initial Public Offering Day: SRC, SUSP, CBF, NBHC & TRLA

Let’s take a look and see how Day One went for all of them.

The Winner: Trulia Inc (NYSE:TRLA)

After pricing its shares at $17, the stock opened at $22.10. By the late morning, shares rose $7 (41 percent) to $24 after trading had jumped to 24.25.

This represented one of the largest gains for a trading debut in recent months, reported the Associated Press. Should this pace continue, Trulia Inc (NYSE:TRLA) could represent the largest Initial Public Offering rise since Five Below Inc. (FIVE) went public on July 19.

On its first day of trading, the stock closed up 56 percent.

For Trulia and its shareholders, 6 million shares had been sold in IPO with approximately $102 million in proceeds. Trulia sold 5 million shares but it won’t get the stockholders’ sales proceeds from the 1 million share balance. JP Morgan (NYSE:JPM) and Deutsche Bank (DB), who managed the Initial Public Offering, may purchase an additional 900,000 shares if there’s a high demand.

The Loser: Capital Bank Financial (NASDAQ:CBF)

Capital Bank Financial’s shares had an IPO price of $18 but a flat opening at $18.10 (0.6 percent) on the Nasdaq Stock Market.

Shares had been priced below its expected $21 and $23 range and late on Wednesday, the company sold 10 million shares after reducing the deal from 11.36 million.

By 11 a.m. EDT, the stock was trading near its opening price at $18.26 (1.5 percent).

From the offerings’ proceeds, the Capital Bank plans to use it for general corporate purposes such as purchases of additional failed or troubled banks, reported the Wall Street Journal.

The Other IPOs

Spirit Realty Capital Inc (NYSE:SRC)

Spirit Realty Capital Inc (NYSE:SRC)’s stock opened at $15 per share, lower than its initial range, on the New York Stock Exchange.

In a Securities and Exchange Commission filing earlier this month, Spirit Realty Capital Inc (NYSE:SRC) planned to price the IPO between $16 and $18 per share. On Wednesday, it said it had offered 29 million shares and based on a $15 offering price, the company would have raised $435 million.

During early trading on Thursday, the stock dipped to 14.76 but at midday was trading at $15.12.

Spirit Realty is also giving underwriters a 30-day option to purchase up to 4.4 million additional shares for potential excess demand. This comes in higher than the initial 4.1 million shares allotment.

Susser Petroleum Partners LP (NASDAQ:SUSP)

Susser Petroleum Partners’ shares opened at $20.50 on the Nasdaq and saw a 16 percent rise on its debut. The company priced the IPO at the top of its $19 to $21 range.

It raised $195 million on 9.5 million common unit.

The company has said it will use proceeds to repay the parent company for capital expenditures and to purchase about $147 million of securities to be utilized as collateral in securing a term-loan.

National Bank Holdings (NYSE:NBHC)

National Bank Holdings shares, priced at $19.25, opened on the New York Stock Exchange at $20.25 (5 percent) but then traded below $20.

The company is led by a former Bank of America Corp (NYSE:BAC) and Regions Financial Corp (NYSE:RF) executive, Timothy Laney.

On Wednesday, the company sold 7.15 million shares lower than its expected $20 and $22 range.

From the sale, the company’s strategic plan includes expansion through select acquisitions.


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