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EP Energy cuts size, price of IPO

  • Investors don’t see a gusher in oil driller EP Energy (EPE), which prices its downsized 35.2M-share IPO at $20/share, below the $23-$27 expected range after originally planning to offer 40M shares.
  • EPE, which has oil-producing assets in Texas, Utah and Louisiana, was formed from the exploration and production assets of El Paso Corp., which Kinder Morgan acquired last year and sold to Apollo Global Management; APO didn't sell any shares in the offering and will remain EPE's largest holder.
  • Energy producer RSP Permian prices its 20M-share IPO at $19.50/share, at the lower end of the $19-$21 expected range; Rice Energy has an IPO on deck for next week.
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Comments (2)
  • Tigersfirstwhore
    , contributor
    Comments (55) | Send Message
     
    Collapsed all the way down to $18.08 on volume of 23 million shares. The only sold 35.2 million, nearly two thirds of the deal sold in the first day, and the underwriter assured me it a "strong book", lol. Hope investors remember Credit Suisse for this.

     

    Fortunately I didn't buy on the deal, unfortunately I did buy after I thought the collapse to $19 was reasonable, little did I know. And the last 5 minutes watching it collapse another $0.42 was a bit absurd, probably some fund that had tags left to sell and just hit all bids to get out.

     

    But what this does do is present a great buying opportunity. $18.08 is to cheap. That is a long way from the original price range of $23-$27.

     

    My recommendation is to buy Tuesday.
    18 Jan, 10:50 AM Reply Like
  • seekfind123
    , contributor
    Comments (25) | Send Message
     
    Tiger, love your SA handle! Read with interest your comments on GGS and others. Would you care to offer an opinion on GEOS? Seems to be a very promising company with good balance sheet.
    21 Jan, 07:58 PM Reply Like
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