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UPS going private again.....
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<blockquote data-quote="Channahon" data-source="post: 174940" data-attributes="member: 7666"><p><span style="color: red">UPS soars past record IPO <span style="font-size: 9px"><strong>November 10, 1999: 4:30 p.m. ET </strong></span></span></p><p></p><p><span style="color: #666666"><strong>Stock opens at 30 percent premium to IPO that raised record $5.5B </strong></span></p><p><em><span style="font-size: 9px">By Staff Writer Chris Isidore <img src="http://i.cnn.net/money/images/dot.gif" alt="" class="fr-fic fr-dii fr-draggable " style="" /><img src="http://i.cnn.net/money/images/dot.gif" alt="" class="fr-fic fr-dii fr-draggable " style="" /> <img src="http://i.cnn.net/money/images/dot.gif" alt="" class="fr-fic fr-dii fr-draggable " style="" /><img src="http://i.cnn.net/money/images/dot.gif" alt="" class="fr-fic fr-dii fr-draggable " style="" /></span></em>NEW YORK (CNNfn) - United Parcel Service burst out the gate rapidly Wednesday, as the scramble for the stock by investors large and small sent it up 30 percent at the opening of trade. The stock closed its first day with a 35 percent gain.</p><p><strong>The Atlanta parcel-delivery giant priced the IPO at $50 a share</strong> late Tuesday, above the recently raised $47 to $49 range set only Friday. The first trade, at 10:03 a.m. on the New York Stock Exchange, was 65. The stock continued to climb, reaching a high of 70-5/16 at 11:35 a.m. before sliding to 67-1/4 at the 4 p.m. close.</p><p>That is still up 17-1/4 or 35 percent from the IPO price and 164 percent from the price of the stock Tuesday when it was privately traded.</p><p>The company combines a strong balance sheet, among the best profit margins in the trucking industry and a lion's share of the growing business of delivery goods purchased by consumers online, making it an attractive Internet play as well.</p><p>"I think there's an excitement that surrounds the whole Internet component, even though it's still not the bulk of what they do," said Ben Holmes, founder of ipoPros.com, an online research firm. "But it also becomes an institutional darling almost immediately." Institutional investors oversubscribed the offering 10 times over, and with individual investor demand that climbed to 14 to 15 times oversubscription, according to a person familiar with the offering. Some 80 million shares traded Thursday, almost three-quarters of the volume of shares issued Wednesday.</p><p><strong><span style="font-family: 'Arial'">Lots of profits, but high price</span></strong></p><p>The company posted net income of $1.95 billion in the 12 months ending Sept. 30, before a $1.4 billion charge for possible payment in a tax dispute. That gives it a ratio of price to trailing earnings of 28 at the IPO price, but a ratio of almost 38 at the closing price. It had revenue of $26.3 billion for the 12-month period, far exceeding any other transportation company.</p><p>That compares to a P/E ratio of 20 for its key competitor, FDX Corp. (FDX), owner of Federal Express and rival ground parcel carrier RPS. FDX's stock was at 43-1/4, down 3/4, at the 4 p.m. close.</p><p>UPS had more than $2.6 billion in cash or equivalents on hand at the end of the last quarter and the best debt rating of any corporation, so it did not need the money from the IPO. <strong>Its officials said it wanted to be able make acquisitions using stock rather than cash and create a market for shares held by employees and retirees. </strong></p><p>The company said has generally grown through expansion of operations, rather than acquisitions, but it has used purchases to fill in holes in its global network, such as the purchase earlier this year of Challenge Air, a Miami air cargo carrier with authority that UPS lacked to fly to many South American countries.</p><p><strong>At the time of the IPO plans were announced, James Kelly, UPS' chairman and chief executive, mentioned the growing threat from acquisition-hungry European postal authorities that have privatized recently. </strong></p><p>"<strong>It really hasn't been about the money. It's been about positioning our company for the future and giving us the currency for acquisitions,"</strong> Kelly said in an interview on CNNfn Wednesday after the close of trading.</p><p>Company comments make some people think that UPS would focus on other overseas purchases with its stock. Others suggested that technology companies might be on its plate.</p><p>"The valuations for technology companies are very high. Why would you pay cash for that, why not pay with another inflated stock?" said Ullas Naik, senior vice president, research and an IPO expert at FAC Equities.</p></blockquote><p></p>
[QUOTE="Channahon, post: 174940, member: 7666"] [COLOR=red]UPS soars past record IPO [SIZE=1][B]November 10, 1999: 4:30 p.m. ET [/B][/SIZE][/COLOR] [COLOR=#666666][B]Stock opens at 30 percent premium to IPO that raised record $5.5B [/B][/COLOR] [I][SIZE=1]By Staff Writer Chris Isidore [IMG]http://i.cnn.net/money/images/dot.gif[/IMG][IMG]http://i.cnn.net/money/images/dot.gif[/IMG] [IMG]http://i.cnn.net/money/images/dot.gif[/IMG][IMG]http://i.cnn.net/money/images/dot.gif[/IMG][/SIZE][/I]NEW YORK (CNNfn) - United Parcel Service burst out the gate rapidly Wednesday, as the scramble for the stock by investors large and small sent it up 30 percent at the opening of trade. The stock closed its first day with a 35 percent gain. [B]The Atlanta parcel-delivery giant priced the IPO at $50 a share[/B] late Tuesday, above the recently raised $47 to $49 range set only Friday. The first trade, at 10:03 a.m. on the New York Stock Exchange, was 65. The stock continued to climb, reaching a high of 70-5/16 at 11:35 a.m. before sliding to 67-1/4 at the 4 p.m. close. That is still up 17-1/4 or 35 percent from the IPO price and 164 percent from the price of the stock Tuesday when it was privately traded. The company combines a strong balance sheet, among the best profit margins in the trucking industry and a lion's share of the growing business of delivery goods purchased by consumers online, making it an attractive Internet play as well. "I think there's an excitement that surrounds the whole Internet component, even though it's still not the bulk of what they do," said Ben Holmes, founder of ipoPros.com, an online research firm. "But it also becomes an institutional darling almost immediately." Institutional investors oversubscribed the offering 10 times over, and with individual investor demand that climbed to 14 to 15 times oversubscription, according to a person familiar with the offering. Some 80 million shares traded Thursday, almost three-quarters of the volume of shares issued Wednesday. [B][FONT=Arial]Lots of profits, but high price[/FONT][/B] The company posted net income of $1.95 billion in the 12 months ending Sept. 30, before a $1.4 billion charge for possible payment in a tax dispute. That gives it a ratio of price to trailing earnings of 28 at the IPO price, but a ratio of almost 38 at the closing price. It had revenue of $26.3 billion for the 12-month period, far exceeding any other transportation company. That compares to a P/E ratio of 20 for its key competitor, FDX Corp. (FDX), owner of Federal Express and rival ground parcel carrier RPS. FDX's stock was at 43-1/4, down 3/4, at the 4 p.m. close. UPS had more than $2.6 billion in cash or equivalents on hand at the end of the last quarter and the best debt rating of any corporation, so it did not need the money from the IPO. [B]Its officials said it wanted to be able make acquisitions using stock rather than cash and create a market for shares held by employees and retirees. [/B] The company said has generally grown through expansion of operations, rather than acquisitions, but it has used purchases to fill in holes in its global network, such as the purchase earlier this year of Challenge Air, a Miami air cargo carrier with authority that UPS lacked to fly to many South American countries. [B]At the time of the IPO plans were announced, James Kelly, UPS' chairman and chief executive, mentioned the growing threat from acquisition-hungry European postal authorities that have privatized recently. [/B] "[B]It really hasn't been about the money. It's been about positioning our company for the future and giving us the currency for acquisitions,"[/B] Kelly said in an interview on CNNfn Wednesday after the close of trading. Company comments make some people think that UPS would focus on other overseas purchases with its stock. Others suggested that technology companies might be on its plate. "The valuations for technology companies are very high. Why would you pay cash for that, why not pay with another inflated stock?" said Ullas Naik, senior vice president, research and an IPO expert at FAC Equities. [/QUOTE]
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