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Reliant IPO surges 10%
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May 1, 2001: 5:34 p.m. ET
Unit of Reliant Energy gains $3 in first day of trade on Big Board
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NEW YORK (CNNfn) - The initial public offering of Reliant Resources Inc. surged 10 percent Tuesday in its debut on the New York Stock Exchange.
The shares gained $3 to close their first day of trading at $33.
Including unit deals, the Reliant offering is the ninth energy related IPO this year, according to CommScan, a New York-based investment banking research firm. Such deals have emerged as consistent winners in the IPO market, rising an average of 23.3 percent in the aftermarket.
"Energy companies have been the best performers in terms of new issues this year," analyst Steve Tuen of IPO Value Monitor said. "This reflects a shift in investor sentiment, in what investors are looking for."
While successful, the Reliant IPO won't be enough to kick start the slumbering IPO market. "The IPO market is still relatively weak," Tuen said. "Next week there are no deals expected to price."
Houston-based Reliant (RRI: up $3.00 to $33.00, Research, Estimates) raised $1.56 billion late Monday selling 52 million shares at $30 each, the top of its $28 to $30 price range, via lead underwriters Goldman Sachs and Credit Suisse First Boston.
Reliant Resources, a unit of Reliant Energy Inc., provides energy services and electricity in deregulated markets throughout the U.S. and Europe. Reliant Resources also trades and markets power, natural gas and other energy-related commodities. It will begin offering retail electric service in Texas in next January and then elsewhere in the U.S.
Reliant Energy (REI: up $0.47 to $50.02, Research, Estimates) will own over 80 percent of outstanding shares after the IPO. 
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