IPO market resumes with small pharma offering

There is only one small IPO offering next week following a holiday break, underscoring the difficult environment for companies that need to raise cash in turbulent capital markets.

Drug developer Anthera Pharmaceuticals Inc. hopes to sell 4.6 million common shares for between $13 to $15 apiece, raising about $64.5 million, according to a regulatory filing from Feb. 3.

Whether they’ll be able to raise that much is uncertain. Worries over the pace of the economic recovery and a bumpy stock market have made investors wary of initial public offerings, especially those from companies with no operating history, high debt or slow sales growth.

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So far, five companies have delayed IPOs in 2010, while three have withdrawn them. Of those that did debut shares, many had to slash prices and limit stockholders from selling shares.

Last week, four out of five businesses that went public did so with shares priced below what was expected. [Read the full article]

Brean Murray, Carret & Co. (BMC), a boutique investment bank and asset management firm, announced today that it acted as lead manager and sole bookrunner on a public offering on behalf of Puda Coal, Inc (PUDA). PUDA is a supplier of high grade metallurgical coking coal for steel manufacturing in China and a coal mine consolidator. According to a PUDA press release issued on February 18th at the time of closing, the company expects to receive net proceeds of approximately $14,538,100 million from the 3,284,000 shares included in the offering.

On February 12th, the Company priced the public offering of 2,855,652 shares of its common stock at $4.75 per share. The expected yield net proceeds, after expenses, of $12,569,486, was expected prior to the exercise of the underwriters’ 30-day over-allotment option to purchase an additional 428,348 shares of common stock. [Read the full article]

TreeHouse Foods, Inc. (NYSE:THS – News) announced today that it priced an underwritten public offering of $400 million in aggregate principal amount of 7.750% senior notes due 2018.  TreeHouse will use the net proceeds of the notes offering to fund, in part, the previously announced and pending acquisition of Sturm Foods, Inc.  The notes offering and the acquisition are expected to close concurrently on March 2, 2010, subject to market and other conditions.  

BofA Merrill Lynch and Wells Fargo Securities, LLC are acting as joint book-running managers for the notes offering.  TreeHouse is making the offering pursuant to a shelf registration statement filed with the Securities and Exchange Commission on February 16, 2010, which has been declared effective, and a prospectus supplement to TreeHouse’s prospectus, dated February 16, 2010, filed with the shelf registration statement. [Read the full article]

Owens Corning (NYSE:OC – News) today announced that it has commenced an underwritten public offering of common stock pursuant to a shelf registration statement on Form S-3 filed today with the Securities and Exchange Commission on behalf of one of its stockholders, the Owens Corning/Fibreboard Asbestos Personal Injury Trust (the “Trust”).  The Trust is offering 12,261,000 shares of common stock of Owens Corning and will grant the underwriters a 30-day option to purchase up to an additional 1,839,000 shares of common stock, on the same terms and conditions, to cover over-allotments, if any.  

Owens Corning will not sell any shares in the offering and will not receive any proceeds from the offering.

BofA Merrill Lynch and J.P. Morgan will act as joint book-running managers of the equity offering. [Read the full article]

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