IPO Alerts: DynCorp and Delek; When-Issued Alert: SprintNextel's Embarq (DCP, DK, EQ)

Includes: DCP, DK, EQ
by: Jon Ogg

We had 2 key IPO's price for trading today: DynCorp and Delek. DynCorp of course is the private defense and services contractor for the US governement, allies and corporations; and Delek is the refining and gas station company in the US. We also have the when-issued trading today for Sprint Nextel's "Embarq" unit.

DynCorp will trade under "DCP" on the NYSE and its 25M share IPO priced at $15.00, which is at the lower-end of the $15.00 to $17.00 expected pricing range. DynCorp is being spun-off from the private equity group Veritas Capital, which it recently purchased from Computer Science Corp (NYSE:CSC).

Delek will trade under "DK" on the NYSE and its 10M share IPO priced at $16.00, at the high-end of the $14.00 to $16.00 range. For some reason it hadn't gotten much attention up through last week (odd considering it has a refinery of its own), although this shaped up this week. The company had 2005 revenues of $2.03 Billion and posted net income of $65M. Lehman and Citigroup lead the offering with CSFB, Morgan Keegan, William Blair, HSBC, and the Israel Discount Bank of NY were co-managers. Delek U.S. Holdings is being spun off by parent Delek Group, the Israeli oil conglomerate controlled by real estate mogul Yitzhak Tshuva.

We have a new "When-Issued" stock trading today called "Embarq," which is Sprint Nextel's (NYSE: S) local communications company that will trade under the ticker "EQ" on the NYSE. According to the company here is their self-description: Upon the separation from Sprint Nextel, EMBARQ is expected to be a NYSE-listed company with approximately $6 Billion in annual revenues, rank among the Fortune 500 and serve as the fifth largest local communications company in the United States based on the company's 7.4 million access lines as of September 30, 2005.

The company will provide a suite of communications services, consisting of local and long distance voice and data services, including high-speed Internet access. The company expects to have approximately 20,000 employees at the time of the separation from Sprint Nextel.