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News > Deals
Global Power IPO up 57%
May 18, 2001: 4:56 p.m. ET

Gas turbine maker surges 57% on NYSE, Instinet up 22%, new strength in IPOs
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NEW YORK (CNNfn) - Gas turbine maker Global Power Equipment Group Inc. surprised analysts when it surged 57 percent in its market debut Friday, while electronic stock market operator Instinet Group Inc. rose 22 percent.

Global Power gained $11.45 to close at $31.45 on the New York Stock Exchange while Instinet added $3.15 to $17.65 on the Nasdaq.

The successful launches of Instinet and Global Power follow the strong IPO from Tellium Inc., a maker of optical switches for telecom providers, which shot up nearly 40 percent Thursday. The success of the recent issues could signal a revival for initial offerings, which have faltered this year in the wake of a broad market decline.

"We're back," said Ben Holmes, president of IPOpros.com. "The IPO market is on."

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He called the Global Power offering "amazing" with the IPO representing the continued strength of the energy sector.

"We'll continue to see energy deals work well," Holmes said

Global Power Equipment Group Inc., which makes gas turbine power plant equipment, raised $147 million Thursday, selling 7.35 million shares at $20 each via lead underwriters Credit Suisse First Boston and Salomon Smith Barney.

The Tulsa, Okla.-based Global Power (GEG: Research, Estimates)  makes equipment that is used in plants in over 30 countries.

The star

However, it was the much anticipated offering from Instinet which garnered much of the buzz Friday. "Anyone who believes in the brokerage sector has to own Instinet," Holmes said.

Instinet, a unit of global news provider Reuters Group PLC, exceeded projections Thursday when it raised $464 million with its IPO. The company sold 32 million shares at $14.50 each via lead underwriters Credit Suisse First Boston and Deutsche Banc Alex. Brown. The company had planned to offer 29.5 million shares at $11.50 to $13.50 each.

Instinet President and CEO Doug Atkin spoke to CNNfn about future plans for the 24-hour electronic brokerage and industry. (334KB AIFF) or (334KB WAV)

Reuters acquired the 33-year old firm in 1987 and will continue to hold a sizeable chunk, 87.5 percent, after the IPO. Underwriters on the deal have an over allotment option, known as a "green shoe," to buy 4.8 million shares. 

New York-based Instinet (INET: Research, Estimates) operates one of largest electronic communication networks (ECN) on which buyers and sellers can trade stock anonymously. Customers, such as institutional investors, can access securities markets globally, including exchanges in Zurich and Hong Kong as well as the Nasdaq.

Instinet had 1,200 customers in 2000. The unit is profitable, with $144.7 million in income on $1.4 billion in revenue for fiscal 2000.

Instinet competes against other ECNs such as Archipelago and The Island ECN.

Lastly...

The offering of Siderca SAIC, which makes steel pipes and tubes that are used in major oil and gas companies, closed flat. Siderca (SDT: Research, Estimates)  raised $36.29 million when it sold 1.9 million American depositary shares at $19.10 each via J.P. Morgan.

Siderca is considered a listing, and not an IPO, because it already trades in Buenos Aires. graphic





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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.