Move over Visa, Intrepid Potash Is the IPO of the Year

Meet Intrepid Potash (IPI) - this is like bringing Google public in 1999... yee haw. Now if this were a real mutual fund, I'd be telling my broker to be getting me as much of this as possible so I can sell to the little folk out there in retail world, up 100% and juice my returns. I'll post the details below, but really it does not matter - the name of the company alone should be worth a $20 billion market cap don't you think?

• Fertilizer maker Intrepid Potash has boosted the size and expected price range of its proposed initial public offering, according to a Securities and Exchange Commission filing on Thursday.
• The Denver-based company now expects the offering to total 30 million shares and price between $27 and $29 apiece. Intrepid previously expected the offering to total 24 million shares and price between $24 and $26 per share.
• Based on the estimated price range, the company will have a market capitalization of $2.02 billion to $2.17 billion.
• Intrepid, which was formed in November 2007, plans to use proceeds from the offering to acquire all the assets, other than cash, of predecessor company Intrepid Mining LLC. Remaining proceeds will be used to repay debt and to fund production expenses and other growth opportunities.
• According to its prospectus, Intrepid is the country's largest producer of muriate of potash, or potassium chloride, a fertilizer that helps regulate plants' physiological functions and improves plant durability. The company owns five active potash production facilities in New Mexico and Utah.
• In 2007, the company reported earnings from continuing operations of $29.7 million, compared with $24.1 million in 2006. Total sales rose to $213.5 million from $152.7 million in the prior year.
• Goldman Sachs, Merrill Lynch and Morgan Stanley are serving as the IPO's lead underwriters. RBC Capital Markets and BMO Capital Markets are also underwriting the offering.

So with 30M shares and about $30M in trailing profit, the math is pretty easy = $1 trailing EPS. If its anything like other potash makers it's growing 50%-100% this coming year so maybe it does $1.50-$2.00 EPS in 2008?

Price at $27-$29? The only thing I know about the company is what is stated above, but I say it opens at $60+. Voracious momentum traders will be all over this...

More info since I originally posted this can now be found here.

Comments

[sunrises:]

Sounds good. Except, will the public actually be able to buy it? V, even if public, corporations bought and individuals are still waiting for a pull-back close to original price plus or minus. Price of $44 was set...tis...no result.

2008 Apr 22 10:44 AM

[Gunslinger:]

Better play, if you can trade Int'l.

UKRA.IL

Much more swallowable valuation on the pure-play, but comes with some government intervention. Just announced $1000 Asian spot, as expected.

(long)

2008 Apr 22 08:25 PM