Huntsman Shares Rise Following IPO
Shares of chemical producer Huntsman Corp. went up 7% on the first day of trading after its IPO.
The IPO raised the company $1.45 billion.
According to a Bloomberg article,
“Huntsman sold 55.7 million common shares at $23 each and 5 million preferred shares at $50 each, the Salt Lake City, Utah- based company said today in a statement. The stock rose $1.80, or 7.8 percent, to $24.80 at 10:04 a.m. in New York Stock Exchange composite trading.
Chief Executive Officer Peter Huntsman, 41, who took over for his billionaire father Jon Huntsman in 2000, is cutting interest expenses and other costs that have eroded the benefit of improved chemical demand. Huntsman is the third commodity chemicals maker to go public in the past six months as profit margins for the industry widen.”
“Huntsman has significant operating leverage to the petrochemical cycle, which is just beginning to significantly improve,” said Greenwich Consultants analyst Michael Judd. “We anticipate that earnings could peak in ’06 or ’07, with the stock potentially peaking six months or more ahead of the earnings peak.”
Huntsman shares went up to $24.51 on the NYSE.
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