Tags: FleetCor | Raises | 292 Million | Three | IPOs | Reduced

FleetCor Raises $292 Million as Three IPOs Reduced

Wednesday, 15 Dec 2010 10:13 AM

FleetCor Technologies Inc., the charge-card provider backed by Summit Partners and Bain Capital LLC, sold its $292 million initial public offering at the bottom of the forecast range as three other IPOs were reduced.

FleetCor, which earns a fee when drivers of commercial fleets use the cards for approved expenses such as food and fuel, sold 12.68 million shares at $23 each after offering them for as much as $26, according to data compiled by Bloomberg. The Norcross, Georgia-based company’s shares climbed 13 percent to $25.91 at 9:54 a.m. in New York Stock Exchange trading.

The offering was one of four U.S. initial sales yesterday in the busiest week for deals since 2007, data compiled by Bloomberg show. Walker & Dunlop Inc., RigNet Inc. and Gain Capital Holdings Inc. completed their sales after offering discounts of at least 25 percent, while IPOs from BG Medicine Inc. and Swift Transportation Co. were pushed back even as the Standard & Poor’s 500 Index traded at a two-year high.

“The IPO market feels tired,” said Timothy Cunningham, a money manager at Santa Fe, New Mexico-based Thornburg Investment Management, which oversees about $70 billion. Investors are “looking down the list and thinking, the market’s had a big run, and how risky do I want the portfolio to be,” he said.

JPMorgan Chase & Co. and Goldman Sachs Group Inc. of New York led the offering for FleetCor, which intends to use the proceeds to repay debt, its filing with the Securities and Exchange Commission showed.

Private Equity

Summit Partners planned to sell 5.1 million shares in the IPO to trim its ownership to 30 percent, the prospectus said. Bain Capital intended to reduce its stake to 15 percent from 18 percent. Both private equity firms are based in Boston.

Walker & Dunlop raised $100 million after the commercial real-estate lender sold 10 million shares at $10 each. The Bethesda, Maryland-based company originally offered the shares for as much as $16 apiece, according to Bloomberg data.

RigNet, the Houston-based provider of communication network infrastructure for the oil and gas industry, sold $60 million of shares at $12 each, less than the $14-to-$16 range it sought from buyers, data compiled by Bloomberg show.

Gain Capital, the online provider of foreign-exchange trading services, raised $81 million after the Bedminster, New Jersey-based company failed to sell as much as $165 million of shares in its IPO, Bloomberg data showed.

Today’s Trading

Walker & Dunlop advanced 0.1 percent to $10.01, while Gain Capital slipped 0.6 percent to $8.95 on the NYSE. RigNet is scheduled to start trading today on the Nasdaq Stock Market.

BG Medicine of Waltham, Massachusetts, delayed its $71 million offering yesterday, data compiled by Bloomberg show.

Swift Transportation, the largest truckload carrier in North America, also delayed its $1 billion offering to today, according to data compiled by Bloomberg. The IPO would be the second largest in the U.S. this year after Detroit-based General Motors Co.’s $18.1 billion offering, the data show.

The S&P 500 climbed for a sixth straight day yesterday, advanced 0.1 percent to 1,241.59 as Commerce Department figures showed retail sales beat estimates. The benchmark gauge for U.S. equity has risen 19 percent since Federal Reserve Chairman Ben S. Bernanke indicated on Aug. 27 that he was considering pumping more cash into financial markets through bond purchases.

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