Susser IPO Trading Above Expectations
NEW YORK -- Susser Holdings Corp., operator of Circle K convenience stores, debuted its initial public offering (IPO) for 6.5 million shares at a price of $16.50 per share under the Nasdaq symbol "SUSS." The price range fell within the $16 to $18 price range forecasted by the company, Reuters reported. By midday yesterday, the price of the shares rose 6 percent to $17.50. It closed its opening day at a high of $18, a gain of 9.09 percent.
The IPO raised $107 million and the shares represent 42 percent of the company. When terms were originally announced on July 20, Susser expected to raise $93.3 million through the IPO. The offering was increased half a million shares from the initial 6 million, giving the company an initial market capitalization of $253 million, Reuters reported.
Net proceeds from the IPO will go to repay debt and other general corporate purposes. Underwriters, including Merill Lynch & Co., will have an option to buy 975,000 shares of common stock at the IPO price to cover over-allotments, if any. The offering is expected to close on Oct. 24, 2006, the company reported.
The Corpus Christi, Texas-based company operates 320 convenience stores in Texas and Oklahoma. In addition to selling convenience items like food, drinks, snacks and gas, 137 of the stores include an in-store restaurant called Laredo Taco Co. Susser also serves as a wholesale distributor of motor fuel to its own stores and other customers and is in the process of rebranding all of its convenience stores to the proprietary Stripes brand.
The IPO raised $107 million and the shares represent 42 percent of the company. When terms were originally announced on July 20, Susser expected to raise $93.3 million through the IPO. The offering was increased half a million shares from the initial 6 million, giving the company an initial market capitalization of $253 million, Reuters reported.
Net proceeds from the IPO will go to repay debt and other general corporate purposes. Underwriters, including Merill Lynch & Co., will have an option to buy 975,000 shares of common stock at the IPO price to cover over-allotments, if any. The offering is expected to close on Oct. 24, 2006, the company reported.
The Corpus Christi, Texas-based company operates 320 convenience stores in Texas and Oklahoma. In addition to selling convenience items like food, drinks, snacks and gas, 137 of the stores include an in-store restaurant called Laredo Taco Co. Susser also serves as a wholesale distributor of motor fuel to its own stores and other customers and is in the process of rebranding all of its convenience stores to the proprietary Stripes brand.