Morgans Trades Flat

Yordanka
19 Feb, 2006
New York City

Long expected IPO of Morgans Hotel Group made a weak performance in the market this week. After pricing at the midpoint of its estimated range, its shares lost almost 1% and are currently trading at their initial offering price.

36 initial public offerings have been priced so far this year as of Feb 17, 2006:

- 22 IPOs are currently trading above initial offering price;
- 10 are trading below the offering price;
- and 4 are trading at their offer price.

A total of two IPOs were priced during the week of February 13th, 2006. There are three deals scheduled to be priced during the coming week, hoping to raise nearly $1 billion.

IPO PERFORMANCE

Morgans Hotel Group Co. ((MHGC)) priced its initial public offering of 18 million shares at $20 per share on Monday, at the midpoint of an estimated price range

The New York-based company was offering 15 million shares and stockholders were selling three million shares of their common stock.

In addition, Morgans has granted to the underwriters an option to purchase up to 2.7 million additional shares to cover any over-allotments.

The offering was managed by Morgan Stanley and Merrill Lynch, with Citigroup, Banc of America Securities, Thomas Weisel Partners, Jefferies and JMP Securities acting as co-managers.

The company owns or partially owns and manages a portfolio of nine luxury hotel properties in New York City, Miami, Los Angeles, San Francisco and London comprising more than 2,500 rooms.

Morgans reported net losses since 2000. As of Sept. 30, Morgans had $659.9 million in outstanding debt; a majority of what it owes is backed by its hotel properties as collateral.

In the first nine months of 2005, the company''s total revenue rose 12% to $190.2 million, compared to the same period a year ago. Net loss was essentially the same as in 2004, at $29.1 million.

The stock closed the first day at $19.89, and ended the week at $20.00, unchanged from the offering price.

Spark Netwroks ((LOV)) priced 33.3 shares at $7.12 per share, at the midpoint of an estimated range of $6 - $8 per share.

The company is an online provider of online personals services in the United States and internationally.

Sparks shares closed the week at $7.60, up 8% from the offering price.

IPO CALENDAR - week of February 20th

Blank check company Acquicor ((ACQU)) plans to offer 17 million shares at a price of $6 per share, in a bid to raise $102 million. ThinkEquity Partners and CRT Capital Group will be the lead managers on the deal.

Online auctioneer Liquidity Services ((LQDT)) plans to offer 7.7 million shares within a price range of $9-$11, in a bid to raise $77 million. Friedman Billings will be the lead underwriter on the deal.

Mexican airport operator Pacific Airport Group ((PAC)) plans to offer 41.5 million American depositari shares within a pricerange of $18 - $20 a share, in a bid to raise $788.5 million. Credit Suisse will be the lead manager on the deal.