LONDON (The Deal) -- British plastic piping manufacturer Polypipe Group plc squirted 120 million shares onto the London market Friday, April 11, with an initial public offering priced at 245 pence a share and an opening market capitalization of 490 million pounds ($819.5 million).
The shares reached a high of 257 pence and managed to stay above water in conditional trading on Friday morning, despite a broad decline on the London market. But by early afternoon, the unlucky timing of floating in the middle of a global selloff began to take its toll as the shares drifted back below 250 pence.
Nevertheless, as a rare industrial stock among the spate of IPOs coming to market in recent months it had a more auspicious start than another private equity-backed stock, Teaneck, N.J.-based Phibro Animal Health Corp., which was due to start trading on Nasdaq this morning. Phibro reportedly priced at $15 per share, below its initial bookbuilding range of $16 to $18 per share. London-listed private equity firm 3i Group plc was expected to sell about 4 million shares in the Phibro offering, in which Bank of America Merrill Lynch, Morgan Stanley and Barclays plc were serving as joint book-running managers. Perella Weinberg is advising Phibro.
Polypipe's shareholders, Cavendish Square Partners LP and company management, made £294 million from the sale of their stock. Cavendish, a fund managed by London firm Caird Capital LLP, cut its stake in Polypipe from 82% to 23% in the IPO and can look forward to raking in a further £29 million and cutting its stake to about 17% if the over-allotment option is fully realized.