After an adjustment ahead of the stock's debut, Graham Packaging Co. Inc.'s initial public offering of shares rose more than 4 percent in trading Feb. 11.
By midmorning, shares which Graham initially priced at $10 on Wednesday were trading at $10.42. By midday, shares in the IPO had settled to around $10.38 each.
York, Pa.-based Graham launched the IPO on Feb. 10, selling 16.7 million shares. That reflected a late decision Feb. 9 by officials to reduce the IPO from a planned 23 million shares. The firm also reduced the price from $14-$16 per share to $12-$13 each.
The IPO is expected to end Feb. 17.
A Graham spokesman declined to comment on the stock's performance. The firm had said proceeds would be used to help pay off debt. The New York private equity firm that owns 75 percent of Graham, Blackstone Group, did not answer a request for comment.
Graham has granted the IPO underwriters a 30-day option to buy an additional 2.5 million shares. In Securities and Exchange Commission filings, the company said Blackstone, which has planned to sell about 12 percent of its stake, would not sell any shares.
Stephen Schwarzman, Blackstone's CEO, had said in October that he planed to take as many as eight of his group's portfolio companies public.
But it's a tough time for any IPO: The Standard & Poor's 500-stock index has fallen for four straight weeks, the largest decline since July 2009.
In a recent note to investors, S&P rated Graham B, with a positive outlook, based on the outcome of the IPO.
Graham in November issued $253.4 million in senior unsecured notes, due in 2017, using the proceeds and cash on hand to refinance debt due in 2012.
For the nine months ended Sept. 30, Graham reported profit of $66.5 million on sales of $1.7 billion.
The company listed assets of $2.2 billion and debt of $2.4 billion on its balance sheet.
Copyright 2010 Crain Communications Inc. All Rights Reserved.