Intelsat’s IPO debut floated 25 per cent of the company’s equity but an opening price of $18 a share on April 18th promptly fell back to $17.19, and as low as $16.90 at one point.
Early trading was high with 2 million shares changing hands in the first 15 minutes of business.
However, recovery was only a few hours away. During April 18th the price hit $19.35 at one point, ending the day’s trading at $18.56, a profit for early buyers of the stock.
But Friday saw a much better performance with the stock opening much more buoyantly, albeit on modest volumes. Trading opened at $19.10, hit $19.80 by mid-morning and by mid-Afternoon had reached a more impressive $20.96 although the stock closed at $20.24.
These $20+ prices perhaps show that the underwriters’ pre-float expectations of a float price of $21 was not too far off the mark.
Intelsat sold just 19.323 million shares and raised $328.8 million, more or less enough to buy one satellite. The cash raised will be used to pay down debt. A year ago Intelsat talked about raising as much as $1.75 billion in the stock offering. When added to the 3m of $50-a-share Series A preferred stock the total amount raised, after costs, will total some $471.7 million.
Intelsat’s major stockholders are venture capital outfits BC Capital Partners, and Silver Lake, are both subject to a 6-month ‘lock-in’ during which time they cannot dispose of stock.