IPI

[BigSully1]

Intrepid Potash shares spike after initial public offering
Tuesday April 22, 11:46 am ET  
Intrepid Potash shares spike more than 50 percent after IPO prices well above expectations


NEW YORK (AP) -- Shares of fertilizer maker Intrepid Potash Inc. spiked more than 50 percent on Tuesday in the first successful initial public offering since Visa Inc.'s blockbuster deal last month.
Intrepid's IPO of 30 million shares priced at $32 per share, well above the expected range of $27 to $29 per share.

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In midday trading, the stock spiked $17.15, or 53.6 percent, to $49.15. The stock has traded as high as $54.51 during the session.

The company originally expected the offering to total 24 million shares and price between $24 and $26 per share.

Intrepid is the first of five deals expected to price this week -- more than the total number of IPOs last month. The deal is the first sign of life in the IPO market, which had ground to a near halt during the recent market turmoil as anxious investors fled to more stable investments.

According to its prospectus with the Securities and Exchange Commission, Intrepid is the country's largest producer of muriate of potash, or potassium chloride, a fertilizer that helps regulate plants' physiological functions and improves plant durability.

Demand for potash has been driven by rising food consumption worldwide and rising demand for ethanol, which is made from corn. Some in the industry think potash prices may hit $1,000 per metric ton by the end of this year, according to a recent report from RBC Capital Markets.

Based on the offering price, the IPO raised $960 million before expenses. Intrepid said about $757.4 million will be used to acquire all the assets, other than cash, of predecessor company Intrepid Mining LLC. Remaining proceeds will be used to repay debt and to fund production expenses and other growth opportunities.

Goldman Sachs, Merrill Lynch, Morgan Stanley, RBC Capital Markets and BMO Capital Markets served as underwriters for Intrepid's IPO. The underwriters have the option to buy up to an additional 4.5 million shares to cover any overallotments.

Shares trade on the New York Stock Exchange under the ticker symbol "IPI."

Other IPOs scheduled to price this week are water utility American Water Works; visual effects developer Digital Domain; mortgage real estate investment trust Hatteras Financial; and oil and gas company Whiting USA Trust I.

[422fwhp]

I nibbled a little today.  Maybe more under $44 ?

[la-onda]

awesome 5 min chart:

[la-onda]

 

This is the 4th 52 WEEK HIGH alert for IPI in the past 7 calendar days.

[AussieTrader]

What a great chart IPI has. Ben on fire for pretty much the whole of June.

IPI sits in the same sector as POT, MOS, CF, AGU, TRA (basic materials - chemical manufacturing) all of which have had a great year so far. That sector is up nearly 50% in 2008 alone as demand and pricing for fertilizers and realted products has continued strongly.

Being aware of the sector of the stock you are interested can make a huge difference to an investment or trading outcome. Energy, Metals, Food, Chemicals have been the sectors of choice for some time now, and by the looks will continue to be the leading groups.