|
Principal IPO trades up
|
 |
October 23, 2001: 2:26 p.m. ET
Principal Financial, week's biggest new issue, rises nearly 14% on first day.
|
NEW YORK (CNNmoney) - Principal Financial Group Inc., the week's first and biggest initial public offering, rose nearly 14 percent Tuesday.
Principal (PFG: up $2.50 to $21.00, Research, Estimates) hit a high of $21.39 on the New York Stock Exchange before falling and closing at $21.
Principal Financial of Des Moines, Iowa, raised $1.85 billion late Monday when it sold 100 million shares at $18.50 each via lead underwriter Goldman Sachs. The company had planned on selling 100 million shares (85 million in the United States and 15 million internationally) at $17 to $20 each.
Principal Financial provides retirement and savings products with a focus on 401(k) plans in the United States. The company also sells investment and insurance products, online banking and mortgage loans.
Principal's success surprised some who thought the large IPO would trade flat. Anthrax scares and terrorist news also have caused choppy trading.
Principal Financial is the third IPO to come to market since the Sept. 11 terrorist attack. Given Imaging Ltd., maker of a tiny camera that fits into a pill to help doctors diagnose internal ailments, went public earlier this month. But Given's (GIVN: up $0.66 to $8.81, Research, Estimates) shares have fallen below their $12 IPO price.
TheraSense, which makes glucose self-monitoring systems for diabetes patients, rose 31 percent in its market debut Oct. 12. TheraSense (THER: down $0.30 to $24.95, Research, Estimates) has kept its gains, surging 32 percent from its $19 offer price.
Principal's success means that strong companies with earnings and a path to profitability will do well in the IPO market, said Corey Ostman, co-CEO of Alert-IPO.com.
"Investors are putting [anthrax scares] on the back burner and looking more at equities," he said. "The last five days of trading have actually been really good." 
|
|
|
|
|
 |
|
