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Inergy IPO gushes 7%
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July 26, 2001: 5:50 p.m. ET
Propane company up 7 percent on Nasdaq, raised $35.2M via A.G. Edwards
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NEW YORK (CNNfn) - Propane company Inergy LP, the latest energy firm to hit the new issues market, gained nearly 7 percent in its first day of trade.
The initial public offering of Inergy (NRGY: Research, Estimates) opened at $23.26, hit a high of $23.76 and closed at $23.50.
Inergy raised $35.2 million late Wednesday when it sold 1.6 million units at $22 each, near the top of its $16-to-$22.50 price range, via lead underwriter A.G. Edwards & Sons Inc.
The energy sector supplied more IPOs – seven – than any other group in the second quarter. One of the best performing offerings, Peabody Energy Corp. (BTU: down $0.35 to $24.65, Research, Estimates), a leading coal company, rose 31 percent in May.
Kansas City, Mo.-based Inergy owns and operates a retail and wholesale propane marketing business. The energy company has bought 11 propane companies since its inception in November 1996.
Inergy serves about 71,000 retail customers in Georgia, Illinois, Indiana, Michigan, North Carolina, Ohio, Tennessee, and Wisconsin.
Inergy, a unit deal, will pay a cash distribution of 60 cents a quarter or $2.40 annually. The company is profitable with $17.5 million in operating income on $202 million revenue for the six months ended March 31. 
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