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 |  Reuters -
Nov-06-2009UPDATE 1-STR Holdings IPO prices below range at $10(topic overview)
CONTENTS:
- Underwriters have the option to purchase up to an additional 1.845 million shares. (More...)
- The solar company, the first one to launch an initial public offering in more than a year, is offering 3.3 million shares, while selling shareholders are offering 9 million. (More...)
- Cowen and Company, Jefferies & Company, Lazard Capital Markets and Macquarie Capital (USA) acted as co-managers of the offering. (More...)
- STR Holdings (STRI) makes components called solar power module encapsulants that protect the circuits in the solar panel. (More...)
- Assuming shares price at the midpoint of $12 per share, STR estimates net proceeds of $31.9 million, up from $25.4 million, when price expectations were higher but share volume was lower. (More...)
- Shares are now trading on the NYSE under the ticker STRI and are up about 7% from the open price. (More...)
- A spokesman for STR Holding declined to comment, citing a "quiet period" imposed by the SEC. A spokeswoman for Credit Suisse, which represents the selling stockholders, was not immediately available for comment. (More...)
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Underwriters have the option to purchase up to an additional 1.845 million shares. STR expects to list its stock on the New York Stock Exchange under the symbol "STRI." This IPO launch comes just a week after energy infrastructure company AEI canceled its initial public offering after reducing its size and price range, delivering a blow to the U.S. IPO market. It was the first company in 2009 to withdraw its IPO just before it priced. [1] NEW YORK — STR Holdings Inc. shares climbed modestly after the solar products company launched its initial public offering but priced below expectations on the New York Stock Exchange.[2]
STR Holdings Inc.' s initial public offering of 12.3 million shares was priced at $10 a share Friday, below the expected per-share price range of $13 to $15 per share.[3] ENFIELD, Conn. - (Business Wire) STR Holdings, Inc. (NYSE: STRI) today announced that the initial public offering of 12,300,000 shares of its common stock has been priced at $10.00 per share.[4]
NEW YORK -- STR Holdings Inc. plans to go public this Friday, a move that would launch the first solar initial public offering on a U.S. index in over a year.[1] NEW YORK -- STR Holdings Inc. cut its initial public offering price range just ahead of its Friday scheduled launch.[5]
The solar company, the first one to launch an initial public offering in more than a year, is offering 3.3 million shares, while selling shareholders are offering 9 million. [6] The selling stockholders have granted the underwriters a 30-day option to purchase up to an additional 1.85 million shares at the initial public offering price to cover over-allotments, if any.[7] STR is offering 2.3 million common shares and plans to price shares between $13 and $15 each. Its selling stockholders -- which include board member affiliates, executive officers and affiliates of an underwriter -- will sell 10 million shares. Francis Gaskins, president of IPOdesktop, said the offering appears overpriced, given its plunging net income, hefty amounts of debt and rising interest expense as a percent of operating income. "There's a hint of desperation in the IPO," said Gaskins, noting that STR's IPO seems "driven by shareholders saying 'Get me out of this deal.' They want to bail."[1] The largest selling stockholder still plans to hold a stake in the company. With this offering, DLJ Merchant Banking Partners IV LP and its affiliated funds will reduce its share ownership from 51.1 percent of shares to between 32.9 percent and 35.3 percent, depending on whether the underwriters buy more shares.[1]
The selling stockholders have granted the underwriters a 30-day option to purchase up to an additional 1,845,000 shares at the initial public offering price to cover over-allotments, if any.[4]
The company said that it will not receive any of the proceeds from the sale of shares by the selling stockholders.[7] In the first half of 2009, STR had sales of $117.7 million, down 14 percent from the year-earlier period, and net income of $6.2 million. It counts BP Solar, First Solar ( FSLR.O ) and SunPower Corp ( SPWRA.O ) among its clients. The last solar company to go public in a U.S.-listed IPO was GT Solar International Inc ( SOLR.O ) last summer; its shares have fallen almost 60 percent since then.[8] The company on Thursday cut the price range of the IPO -- the first from a U.S.-listed solar company in more than a year -- to between $11 and $13, down from a previous estimate of $13 to $15 price.[8] Shares rose 29 cents, or 2.9 percent, to $10.29 in morning trading. They priced at $10, which was below the expected range between $11 per share and $13 per share. A day earlier, the company cut its expected share price from a range of $13 to $15.[2] On Thursday solar company said it expects shares to price between $11 per share and $13 per share.[5]
Opening at $10 a share, it fell below the company's expectation of offering between $11 and $13 a share. This estimate was lowered last night from a previous outlook of $13 to $15 a share.[6]
STR was founded in 1944 as a plastics research and development company. Its encapsulants protect a solar module's semiconductor circuit. The company plans to use $15 million from the offering to pay down debt, with the remainder for working capital and general corporate purposes, according to its offering prospectus.[8] The company said it plans to use $15 million of the proceeds to pay off debt, while the remaining proceeds will fund working capital and general corporate purposes.[1]
The company will use proceeds to pay down debt and provide a working capital cushion.[9]
Cowen and Company, Jefferies & Company, Lazard Capital Markets and Macquarie Capital (USA) acted as co-managers of the offering. The offering of these securities is being made only by means of a prospectus, copies of which may be obtained from Credit Suisse Securities (USA) LLC, Attn: Prospectus Department, One Madison Avenue 1B, New York, New York, 10010; telephone (800) 221-1037; or Goldman, Sachs & Co., Attention: Prospectus Department, 85 Broad Street, New York, New York 10004; telephone (866) 471-2526, facsimile (212) 902-9316 or by emailing prospectus-ny@ny.email.gs.com. A registration statement relating to these securities has been filed and declared effective by the Securities and Exchange Commission. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. [4] The Enfield, Connecticut-based company, which makes parts called solar power module encapsulants, started trading on the New York Stock Exchange under the symbol "STRI" up 3 percent at $10.36.[8] The shares began trading today on The New York Stock Exchange under the ticker symbol "STRI."[7]
NEW YORK ( TheStreet ) -- STR Holdings' ( STRI Quote ) debut on the New York Stock Exchange this morning was disappointing.[6]
STR Holdings (STRI) makes components called solar power module encapsulants that protect the circuits in the solar panel. [9] STR Holdings, Inc. is a leading global provider of encapsulants to the solar module industry. It is also a leader in the consumer products quality assurance market, providing inspection, testing and audit services to retailers and manufacturers, around the globe to enable them to determine whether their products and facilities meet applicable, safety, regulatory, quality, performance, and social standards.[4] STR, based in Enfield, Conn., makes solar module encapsulants and provides consumer product quality assurance services.[2]
The maker of solar module encapsulants and consumer product quality assurance services is looking to raise net proceeds of about $25.4 million.[1]
Assuming shares price at the midpoint of $12 per share, STR estimates net proceeds of $31.9 million, up from $25.4 million, when price expectations were higher but share volume was lower. [5] Ancestry.com, which operates a subscription-based online community for researching family histories, raised $100 million by offering 7,407,407 shares at $13.50, within the range of $12.50 to $14.50 per share.[10]
Total shares offered by the company and selling shareholders remains unchanged, but the balance tipped slightly toward the company. STR raised its offering to 3.3 million shares from 2.3 million shares. Selling shareholders cut their offering to 9 million shares from 10 million.[5] Of the shares being sold, 3.30 million are being offered by the Company and 9 million shares are being offered by selling stockholders.[7]
The company will not receive any proceeds from the sales of stockholders' shares.[6]
Shares are now trading on the NYSE under the ticker STRI and are up about 7% from the open price. Another solar IPO on the horizon is Trony Solar (TRO). [9] The first solar IPO in about a year began trading this morning below the expected range of $11 13/share around $10/share.[9]
By going public, STR would launch the first solar initial public offering on a U.S. index in over a year.[5]
For the first six months of the year, the company's net income fell 61 percent to $6.2 million from the year-ago period, as market conditions worsened.[1]
Underwriters have the option to purchase up to an additional 1.84 million shares.[6]
A spokesman for STR Holding declined to comment, citing a "quiet period" imposed by the SEC. A spokeswoman for Credit Suisse, which represents the selling stockholders, was not immediately available for comment. [1] Certainly not a hugely successful IPO, but holding in there at a time when solar stocks are generally struggling.[9] Renaissance Capital and/or the IPO Plus Fund (symbol: IPOSX) may have investments in securities of companies mentioned.[10] The company is very profitable and growing quickly so should generate more interest than the STR IPO is.[9] Other IPOs that took place during the week were Ancestry.com ( ACOM Quote ) and the highly-anticipated Hyatt Hotels ( H Quote ). -- Reported by Jeanine Poggi in New York Follow TheStreet.com on Twitter and become a fan on Facebook.[6]
SOURCES
1. STR Holdings To Launch First Solar IPO In 15 Mos - BART Shooting News Story - KTVU San Francisco
2. The Associated Press: STR Holdings shares rise modestly in IPO debut
3. STR Holdings 12.3M-Share IPO Priced At $10/Shr - WSJ.com
4. STR Holdings, Inc. Prices Its Initial Public Offering
5. STR cuts IPO pricing ahead of Friday launch - Forbes.com
6. IPO Watch: STR Holdings Disappoints | The Market Update | Financial Articles & Investing News | TheStreet.com
7. RTTNews - Latest Earnings,Upcoming Earnings, Pos Pre Announcements, Pos Pre Announcements , Positive Surprises, Negative Surprises, Hot Stocks, Stock Split Calendar, Stock Buybacks, Dividends, Negative, Positive PreAnnouncements,Surprises .
8. UPDATE 1-STR Holdings IPO prices below range at $10 | Reuters
9. Solar IPO STR Holdings (STRI) Begins Trading Below Expected Range | Green Stocks Central
10. IPO News: Ancestry.com prices IPO at $13.50, within the range (by Renaissance Capital)
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