10/23/09

The performance of this week's three IPOs proved to be uninspiring.

Dole Food Company (DOLE), a leading global branded fruit and vegetable company, raised $446 million by offering 35,715,000 at $12.50, below the proposed range of $13.00 to $15.00. Goldman Sachs, BofA Merrill Lynch, and Deutsche Bank acted as lead managers on the deal. Dole opened Friday slightly below its IPO price, and slipped further throughout the day, trading down over -2%.

AGA Medical Holdings (AGAM), which makes minimally invasive devices to treat heart defects and vascular diseases, raised $199 million by offering 13.75 million shares at $14.50, below the downwardly-revised range of $15.00 to $16.00. BofA Merrill Lynch, Citi, and Deutsche Bank were the lead managers on the deal. Though AGAM had a first day return of 0.7%, it is now trading at its IPO price of $14.50.

ZST Digital Networks (ZSTN), a Chinese TV set-top box provider, raised $25 million by offering 3.1 million shares at $8.00, the midpoint of the proposed $7.50 to $8.50 range. Rodman & Renshaw and WestPark Capital acted as lead managers on the deal. ZSTN fell -6.0% in its first day of trading Tuesday, falling lower in subsequent trading.

However, the IPO market continues its volume pick-up with three more deals on the IPO calendar for next week. Addus HomeCare (ADUS), which provides home-based personal care, skilled nursing and rehabilitative therapies, plans to raise $60 million. Retailer Vitamin Shoppe (VSI) expects to raise $136 million in its IPO. Next week's largest deal will be emerging market energy infrastructure operator AEI (AEI), which plans to raise $750 million.

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