Baton Rouge-based Edgen Group Inc. has priced its initial public offering of stock at $11 per share, which could generate close to $190 million before expenses for the steel-pipe supplier.
The pricing announced Friday fell short of the $14 to $16 per share Edgen expected the IPO would fetch, according to the company’s registration statement with the U.S. Securities and Exchange Commission. Edgen intends to sell up to 17.3 million shares — 15 million in the initial offering and up to 2.3 million more in case investor demand exceeds the shares available.
At its previously anticipated price range, Edgen would have grossed $241.2 million to $275.6 million.
In a news release, Edgen said it expects to close the offering on May 2.
Edgen said it plans to use the money to repay debt and for general corporate purposes.
Edgen supplies steel pipe, valves, heavy plate and related components to exploration and production companies, pipelines, refineries, chemical companies, shipbuilders, and power and nuclear plants worldwide.
Edgen ended 2011 with $497.9 million in long-term debt and capital leases, according to its SEC filing. The company paid $65.9 million in interest in 2011.
Edgen shares will be listed on the New York Stock Exchange under the symbol “EDG.”
Jefferies & Co. Inc., Morgan Stanley & Co. LLC and Citigroup Global Markets Inc. are serving as joint managers for the offering. Stephens Inc., Tudor Pickering Holt & Co. Securities Inc., BB&T Capital Markets and HSBC Securities (USA) Inc. are serving as co-managers.
Federal securities laws prohibit Edgen officials from commenting on the stock offering.
Edgen has estimated that its first-quarter earnings, if it had been a publicly traded company, were between $3.5 million and $4.5 million on revenue of $496 million to $514 million.
Edgen’s 2011 earnings were $2.1 million, or 1 cent per share, on sales of $1.7 billion. In 2010, the company lost $89.3 million, or $2.19 per share, on sales of $1.3 billion.
The company has 546 full-time employees.