Intrawest trades below initial price after public offering
January 31, 2014
Steamboat Springs — Intrawest's initial public offering continued its downward slide Friday during its first day of public trading.
The owner of Steamboat Ski and Resort Corp. opened public trading Friday, listed as SNOW, at $11.11 per share, which is lower than its initial price of $12 per share.
After quickly dropping as low as $10.80 per share, the price recovered to close at $11.90 per share, up from its open but still short of its initial price.
Intrawest had expected its initial price to be between $15 and $17, according to filings with the Securities and Exchange Commission, before pricing at $12 per share Thursday evening.
The drop to $12 means Intrawest will net about $35.1 million from the IPO after selling about 3.125 million shares, according to a news release. It had expected to take home about $43.6 million if it had priced in its initial range, its SEC filings state.
Intrawest is controlled by private equity funds managed by Fortress Investment Group. The funds sold about 12.5 million shares, but Fortress will retain about 65 percent control of Intrawest.
In a news release Thursday, Intrawest reiterated that it will not receive any proceeds from the stock sold by the Fortress-managed funds, and it has no specific plans for the net proceeds of its shares.
"We have no specific plan for the net proceeds to us from this offering and intend to use such proceeds for working capital and other general corporate purposes, which may include potential investments in, and acquisitions of, ski and adventure travel businesses and assets," Intrawest wrote when filing documents. "No material acquisitions are probable at this time."
The IPO is scheduled to close Wednesday, when stock certificates typically are delivered and selling shareholders are paid.
The offering was underwritten by Goldman Sachs, Credit Suisse, Deutsche Bank and Bank of America Merrill Lynch.
Intrawest filed with the Securities and Exchange Commission to regain its stature as a publicly held company in November 2013.
In addition to Winter Park and Steamboat, the company operates Mount Tremblant Resort in Quebec, Stratton Mountain Resort in Vermont and Snowshoe Mountain in West Virginia. Intrawest also owns a half-interest in Blue Mountain Ski Resort in Ontario.