Metals producer Noranda Aluminum Holding Corp. said Thursday that it was slashing the size of its expected IPO by 66 percent.
Noranda is now offering 10 million shares for $8 to $9 each, which would raise about $85 million.
The Franklin, Tenn., company had said in a regulatory filing from May 10 that it hoped to sell 16.7 million shares for $14 to $16 each, raising about $250.5 million.
Noranda's private equity owner, Apollo Management LP, had planned to offer 2.5 million shares to underwriters to cover excess demand. It now intends to keep its entire stake of 43 million shares.
Shares are expected to begin trading Friday on the New York Stock Exchange under the symbol "NOR."
Demand for IPOs remains tepid in a volatile stock market. Retailer Express Inc. priced shares below expectations Wednesday night, while mobile navigation services provider TeleNav Inc. priced shares 33 percent below the midpoint of the original planned price range. Trucking company Roadrunner Transportation Systems Inc. priced its IPO at the bottom of the expected range Wednesday night.
Noranda also follows the troubled debut of another metals company, processor Metals USA Holdings Corp., which was also taken public by Apollo Management LP last month. Its shares tumbled nearly 9 percent in their first day of trading after pricing above expectations. The stock is still more than 25 percent below its offering price.
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