[ACLI] Barge and TowBoats ??? IPO ??
finance.yahoo.com
American Commercial Lines sets sail
Billionaire Sam Zell owns a stake in the barge maker
By Steve Gelsi, MarketWatch
Last Update: 9:38 AM ET Oct. 7, 2005
NEW YORK (MarketWatch) -- American Commercial Lines held the distinction Friday of being the first shipping firm this fall to price at the top end of its range for its stock market debut.
The maker of barges and towboats used on the Mississippi River and the Gulf of Mexico offered 8.25 million shares at $21 a share in a bid to raise $173.3 million.
FinancialsMore ACLInews, chart, profile) pricing came in at the high end of the expected range of $19 to $21 with underwriter Merrill Lynch
Sal Morreale, an IPO trader from Cantor Fitzgerald, said the deal drew interest partly because of the role of billionaire Sam Zell, who owns about 32% of the company.
"The average life of a barge is 25 years, and theyre in the replacement mode right now," he said. "This isn't your traditional shipping company. And with all the problems with Katrina, you'll see increased business."
Shares of Jefferson, Ind.-based firm are due to start trading on the Nasdaq Friday.
At the same time, Wall Street is becoming wary of other shipping firms.
A planned debut of Golden Energy Marine will awaits pricing.
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