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FMC IPO gains 10 percent
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June 14, 2001: 4:22 p.m. ET
Provider of oil exploration services rises on NYSE; Kraft, Odyssey drop
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NEW YORK (CNNfn) - FMC Technologies Inc., a provider of crude oil exploration services, rose by 10 percent in its first day of trade, while reinsurer Odyssey Re Holdings Corp., dropped below its offer price.
Shares for FMC Technologies gained $2 to close at $22 on the New York Stock Exchange while Odyssey Re never managed to trade above its $18 offer price. Odyssey ended Thursday off 80 cents to $17.20.
Meanwhile, the year's biggest IPO, Kraft Foods Inc., also fell below its $31 offer price Thursday and dropped nearly four percent. Kraft (KFT: down $1.10 to $30.15, Research, Estimates), in a widely anticipated $8.68 billion offering, went public Wednesday after selling 280 million shares at $31 each via lead underwriters Credit Suisse First Boston and Salomon Smith Barney.
Chicago-based FMC Technologies (FTI: Research, Estimates) sold 11.05 million shares at $20 each, within its $19-to-$21 price range, via lead underwriter Merrill Lynch.
FMC Tech, through its different units, provides oil exploration services as well as juice extraction. The FMC energy group has entered into a five-year alliance with BP PLC (BP: down $0.45 to $52.55, Research, Estimates) for deepwater development in the Gulf of Mexico.
FMC's FoodTech unit handles 75 percent of the global production of orange juice and freezes about 50 percent of commercially frozen foods worldwide.
After the IPO, parent firm FMC Corp. (FMC: down $2.42 to $74.06, Research, Estimates) will hold an 83 percent stake of outstanding shares. FMC plans to complete the spinoff, through the distribution of shares through a special dividend to shareholders, by the end of calendar year 2001.
Odyssey Re Holding Corp., the fifth and last IPO to open on the NYSE this week, raised $307.8 million. The reinsurer sold 17.1 million shares at $18 each, with its 16-to-$19 price range, via Banc of America Securities and CIBC World Markets.
New York-based Odyssey Re (ORH: Research, Estimates), one of the nation's top 10 reinsurers, offers property and casualty products globally. The company targets both insurers and reinsurers, earning $221.4 million revenue on $18.8 million income for the March quarter.
Toronto-based Fairfax Financial Holdings Inc., through units TIG Insurance Co. and ORH Holdings Inc., will own a 73.6 percent stake after the IPO. 
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