Mistras prices below range, Omeros at bottom in IPOs
* Mistras prices shares at $12.50, raises $108.75 mln
* Omeros shares priced at $10, raising $68.2 mln
By Phil Wahba
NEW YORK, Oct 7 (Reuters) - Mistras Group Inc (MG.N), aprovider of technology to evaluate the structural integrity ofinfrastructure, priced shares in its initial public offeringfor $12.50 per share, well below expectations.
Mistras sold 8.7 million shares in the IPO and raised$108.75 million, but the company had expected the shares tosell for between $14 and $16 apiece.
The IPO fell short despite the company's growth. Thecompany, whose clients include Pfizer Inc (PFE.N) andExxonMobil Corp (XOM.N), saw revenue rise 37.3 percent to$209.1 million in fiscal 2009, with net income of $5.5million.
But it may have suffered from investors buying stocks inthe massive IPOs this week by Banco Santander (Brasil) SA(SANB11.SA) SBSR.N and insurance risk specialist VeriskAnalytics Inc (VRSK.O), which together raised close to $10billion in their deals, leaving little room for new smallerstocks, advisory firm IPO Boutique wrote in a note to clients.
The IPO was managed by JP Morgan, Credit Suisse and Bank ofAmerica Merrill Lynch. The underwriters have the option to buyan additional 1.3 million shares.
About 23 percent of the shares in the Mistras IPO werebeing sold by existing shareholders.
The other company to complete its IPO on Wednesday --biotech company Omeros Corp (OMER.O), which makes centralnervous system anti-inflammation products -- priced its sharesfor $10, at the bottom of the expected range, raising $68.2million in an IPO managed by Deutsche Bank Securities. Theunderwriters have the option to buy another 1.02 millionshares.
Omeros has no products approved yet for commercial use andhas not generated any revenue from product sales, according toa prospectus filed with regulators.
Omeros, based in Seattle, will use the net proceeds tocomplete clinical trials and commercialize its products.
Both stocks are set to debut on Thursday, Mistras on theNew York Stock Exchange under the symbol "MG," and Omeros onNasdaq under the symbol "OMER." (Editing Bernard Orr, Gary Hill)
Source: Reuters
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