New York : The shares of Noranda Aluminum Holding Corp and China's JinkoSolar Holding Company rose in their market debuts on Friday while a third IPO — Wave2Wave Communications — was postponed because of poor market conditions.
"A week ago, there were a lot of deals cancelled or postponed," Morningstar IPO Strategist Bill Buhr said.
"Last week there was weak pricing and indifferent investor demand. The market might be ready to take a breather.
"The window might not be closed completely but it could be closing."
The Greek debt crisis and last week's unexpected plunge in US stock prices have caused a number of deals to be cancelled, postponed or repriced.
Some have said there could be a broader dampening effect on new issues.
Noranda Aluminum shares opened on the New York Stock Exchange at $8.30 (Dh44.28), 3.8 per cent above their IPO price, and rose as high as $8.89 before closing at $8.80.
The company, which smelts and refines aluminum and mines bauxite, sold 10 million shares for $8 each on Thursday, raising about $80 million, after slashing the value of its IPO nearly 70 per cent.
Noranda Aluminum originally planned to sell 16.67 million shares for $14 to $16 each, but cut the expected terms to 10 million shares for between $8 and $9 before it priced.
Apollo Management LP is the majority owner of Noranda Aluminum.
The private equity firm had planned to sell 2.5 million shares in the offering, but later decided not to sell any, according to the revised prospectus.
JinkoSolar shares opened flat with their IPO price at $11 and rose as high as $11.38 before closing at $11.01.
The company raised about $64.19 million on Thursday by selling 5.84 million American Depositary Shares for $11 each, the low end of its planned price range.
In February, JinkoSolar shelved plans for an IPO of 10.6 million ADS for $6 to $8 each.
The updated filing also showed changes in the underwriters.
Goldman Sachs (Asia) and Credit Suisse underwrote the original IPO, but a new, blank filing in April showed only Credit Suisse.
The most recent prospectus adds Oppenheimer and Co, Roth Capital Partners and Collins Stewart to the roster.
JinkoSolar, which makes silicon wafers, solar cells and solar modules, posted declines in both revenue and net income attributable to common shareholders in 2009.
It said it would use the proceeds from the offering to expand its manufacturing, for research and development, and for working capital.
Chinese solar companies are seizing on increased demand as developers rush to install projects before planned cuts to solar subsidies in Germany take effect.
Analysts said Chinese companies were well-positioned to compete on price.
Noranda's sales rose 83.5 per cent to $301.5 million in the three months ended March 31.
The company reported a $100,000 loss compared with a year-earlier profit of $44.3 million.
The company said it wild use proceeds from its IPO to pay back debt and loans.
Bank of America Merrill Lynch led 10 underwriters on the Noranda offering.
GM trade on agenda
New York (Bloomberg): The US Treasury, 61 per cent owner of General Motors Company, is talking with several banks about advising the department on the company's return to public trading, said a person with direct knowledge of the matter.
Greenhill and Company, Lazard Limited and Perella Weinberg Partners were among banks interviewed by the US Treasury Department about an initial public offering of General Motors Company, said the person, who asked not to be identified.
A decision may not be made until the third quarter.
Chief Executive Officer Ed Whitacre wants GM to return to the auto-lending business before holding an IPO in the fourth quarter, sources said.
The automaker was about to report first-quarter financial results.
A General Motors Company spokeswoman, Renee Rashid-Merem, declined to comment on the Treasury's adviser decision.
The biggest surge in US stock market volatility in 20 years has battered IPOs this month.
At least 16 offerings worldwide have been postponed or withdrawn or cut the size of sales.
