Shares of GrafTech International Ltd. were priced well under expectations when it launched its IPO with fewer shares than expected made available, which led to the graphite electrode manufacturer hitting only about 60 percent of its maximum raise goal.
Ahead of GrafTech’s IPO, sources were predicting a raise of as much as $907 million, with share prices falling somewhere between $21 and $24. But the company went public at $15 per share for the 35 million shares made available, which Reuters reports is less than the 37.8 million that were originally planned.
That led to the company raising just $525 million for owner Brookfield Asset Management Inc., which gives GrafTech a market value of around $4.5 billion, according to Reuters sources. That’s less than the $7.3 to $8 billion the company was reportedly targeting.
The company said in a press release that the selling stockholder has granted the underwriters a 30-day overallotment option of up to an additional 5,250,000 shares of common stock. The shares were listed on the New York Stock Exchange under the symbol “EAF” on April 19, 2018.
According to the company’s press release, the offering is expected to close on April 23, 2018.
