DOW JONES NEWSWIRES
Kraton Performance Polymers Inc.'s initial public offering of at
least 10.3 million shares priced at $13.50 each Wednesday, below
the expected price range of $16 to $18.
The synthetic-rubber producer is the third IPO this week to
price below the expected range. Hospital-staffing company Team
Health Holdings Inc. (TMH)--seen as the most promising IPO of the
week--also cut its offering size by a third Tuesday.
Team Health closed up 7% from its IPO price, while oil explorer
Cobalt International Energy Inc. (CIE) closed flat in its
debut.
This is the last week for IPO activity in the U.S. before the
Christmas holiday. The market likely won't reactivate until late
January.
Kraton, which will trade on the New York Stock Exchange under
the symbol KRA, plans to use proceeds from its IPO for debt
reduction and future growth. Many companies in recent months have
sold shares so they can repay debt.
Kraton, owned by private-equity firm TPG Inc. and JPMorgan Chase
& Co.'s (JPM) private-equity business, makes polymers for such
industrial and consumer applications as footwear, adhesives, and
paving and roofing supply.
The subsidiary of Polymer Holdings LLC was profitable in 2008
after losses the previous two years. Last month, it reported
third-quarter earnings dropped by more than a third as sales
slid.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com