Chemical Firms Start Trading

STOCK MARKET

Aiming to cash in on equity markets friendly to chemicals, three chemical companies launched their initial public offerings last week.

Rockwood Holdings shares began trading last Wednesday on the New York Stock Exchange under the ticker symbol ROC. Rockwood priced shares at the $20 mark--below its previously suggested maximum share price of $26--and closed at that price in its first day listed.

Rockwood is a specialty chemical company cobbled together by equity investment firm Kohlberg Kravis Roberts & Co., through the purchase of businesses from Laporte and Dynamit Nobel. It had sales in 2004 of $1.7 billion. The IPO is expected to fetch $400 million.

Last week, fertilizer maker CF Industries successfully wrapped up its IPO. With an initial offering price of $16, shares began trading on the NYSE under the symbol CF and subsequently climbed to as high as $18. The company sold some 47 million shares of common stock--including a 6 million-share over-allotment option for the IPO's underwriters.

Overall, the company raised $750 million with the offering. Proceeds are being distributed to CF Industries' longtime shareholders, which for the most part are large agricultural cooperatives. Land O' Lakes received $315 million and relieved itself of its 38% interest in the company. CHS Inc. drew down its holdings in CF Industries from about 20% to 4%.

Canexus Income Fund--which holds a 36.5% stake in Canexus LP, the former sodium chlorate and chlor-alkali business of Nexen--debuted its "trust units" on the Toronto Stock Exchange under the symbol CUS.UN last Thursday. The shares have been priced at $8.20 and are expected to raise about $250 million.