NEW YORK (Dow Jones) - HFF Inc. and Employers Holdings moved higher Wednesday in the busiest IPO day so far in 2007, with four deals debuting.
Duncan Energy Partners and Animal Health also rang up solid gains as the new- issues market finishes out January with a flash of heat.
HFF and Employers Holdings offer Wall Street access to growing profits from financial-related businesses - one from real estate financing and the other in insurance.
Employers Holdings (NYSE:EIG) (EIG) stepped out as the day's richest deal, with 26.75 million shares priced at $17 to raise $455 million. The IPO opened at $20 and fell to $19.63 in the open market for a gain of about 16%.
The worker's-compensation-insurance provider priced above its $14-to-$16 range via underwriters Morgan Stanley and Cochran Caronia Waller Securities.
Earlier this week, Employers Holdings increased the size of the IPO from 23 million shares, a sign of healthy investor interest.
The Reno, Nevada, company is changing its name from EIG Mutual Holding Co. as part of the IPO.
John Fitzgibbon of IPOScoop.com assigned a rating of three out of five stars for Employers Holding, the best grade of about six IPOs expected this week.
In the first nine months of 2006, the company reported net income nearly doubled to $116.5 million from $63 million in the year-earlier period. Revenue slipped to $359 million from $371 million.
HFF Inc. offers access to real estate biz
HFF (HF) priced 14.3 million shares at $18 to raise $257.4 million in its IPO. The IPO opened at $18.15 and rose to $19 in the open market.
The Pittsburgh provider of commercial-real-estate and capital-markets services priced above its $15-to-$17 range via underwriters Goldman Sachs, Morgan Stanley, Banc of America, Wachovia, J.P. Morgan Securities and Lehman Brothers.
HFF, the holding company for and HFF Securities LP, offers debt placement, investment sales, structured finance, private equity, note sales advisory services and commercial loan servicing to the real estate industry.
In the first nine months of 2006, the company said net income rose to $31.7 million from $29 million in the year-earlier period. Revenue reached $157 million from $137 million.
HFF marks the second deal in a week from the real-estate sector after Meruelo Maddox Properties (MMPI) kicked off last Thursday at $10 a share. The stock is trading at $10.64 now.
Duncan Energy Partners prices atop range
Duncan Energy Partners (NYSE:DEP) (DEP) offered 13 million common units at $21 each in a bid to raise $273 million in its initial public offering. The IPO opened at $ 22.50 and rose to $23 for a gain of 9.5%.
The IPO made it first trade at $22.50 a share and changed hands at $22.76 in the open market for a gain of 8%.
The energy partnership priced at the top of its $19-to-$21 range via underwriters Lehman Brothers and UBS Investment Bank.
Launched by Enterprise Products Partners (NYSE:EPD) (EPD) in September of last year, Duncan was formed to own, operate and acquire a portfolio of midstream energy assets. Shares of Enterprise Products Partners (NYSE:EPD) rose 18 cents to $29.55.
Scott Sweet, managing partner and principal researcher at IPO Boutique, said that the deal is "well oversubscribed" with a strong retail concentration. He wrote in a note that Duncan's yield of 8% has been attracting investors.
Animal Health International prices mid-range
Animal Health International (NASDAQ-NMS:AHII) (AHII) raised $130 million by offering 11.8 million shares at $11 a share, the middle of its $10-to-$12 range, via underwriters J.P. Morgan and William Blair. The IPO opened at $12 and changed hands at $11.88 in the open market.
The distributor of animal-health products for pets and livestock drew kudos from fund manager Renaissance Capital, which tapped it as its IPO of the week
"Animal Health deserves credit for its solid historical performance, its high- repeat business model and room for expansion, both internally and via acquisitions," Renaissance Capital said. "With its favorable proposed valuation, we expect this IPO to receive a warm welcome from investors."
(END) Dow Jones Newswires 01-31-07 1141 Copyright (c) 2007 Dow Jones & Company, Inc.
