Instinet IPO raises $464M

May 17, 2001
Web posted at: 2330 GMT

NEW YORK (CNNfn) -- Instinet Group Inc. came in above expectations Thursday, raising $464 million ahead of its initial public offering.

Instinet sold 32 million shares at $14.50 each via lead underwriters Credit Suisse First Boston and Deutsche Banc Alex. Brown. The company had planned to offer 29.5 million shares at $11.50-to-$13.50 each.

Instinet originally filed on Feb. 8 to raise $450 million.

New York-based Instinet operates one of largest electronic communication networks (ECN) where buyers and sellers can trade stock anonymously. Customers, such as institutional investors, can access securities markets globally, including exchanges in Zurich and Hong Kong as well as the Nasdaq. Instinet competes against other ECNs such as Archipelago and The Island ECN.

Instinet will use $150 million to pay off debt to parent firm Reuters Group PLC. After the IPO, London-based Reuters (RTRSY: up $0.10 to $88.10, Research, Estimates) will own 87.5 percent of common stock

Instinet plans to trade under the Nasdaq symbol "INET." 

Global Power Equipment Group Inc., which makes gas turbine power plant equipment, also came in ahead of expectations. The energy firm raised $147 million, selling 7.35 million shares at $20 each via lead underwriters Credit Suisse First Boston and Salomon Smith Barney.

Global Power had planned to sell 7.35 million shares at $16-to-$18 each.

The Tulsa, Okla.-based energy firm, whose equipment is used in plants in over 30 countries, will trade as "GEG" on the New York Stock Exchange.

Siderca S.A.I.C. raised $36.29 million when it sold 1.9 million American Depositary shares at $19.10 each via J.P. Morgan. Buenos Aires-based Siderca makes steel pipes and tubes that are used in major oil and gas companies.

Siderca already trades in Buenos Aires and will trade Friday on the New York Stock Exchange under the symbol "SDT."

Instinet modifies IPO terms – Apr. 26, 2001

IPO market revs up – May 12, 2001

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