Asurix Hangs on to its IPO Price
By Darren Chervitz, CBS
Last Update: 6:09 PM ET Jun 10, 1999
NEW YORK (CBS.MW) -- Azurix notched a slight gain Thursday on its stock-market debut after the
manager of water and wastewater assets raised $695 million in its initial public offering, the biggest
deal since Goldman Sachs' last month.
Azurix (AZX: news, msgs), a spinoff from gas and electricity giant Enron (ENE: news, msgs),
sold 36.6 million shares at $19, the low end of the estimated range.
The stock opened for trading on the New York Stock Exchange flat at the offering price and closed the
day at 19 1/8. Enron, which sold more than half of the shares in the IPO, gained 1/4 to 78 9/16.
Azurix, with 8.6 million shares changing hands, was the eighth-most-active stock on the Big Board.
The Houston company's operations include the collection and treatment of drinking water, and the
collection and disposal of wastewater and its by-products.
According to the prospectus, governments around the country are beginning to turn over control of
their water assets to private companies such as Azurix. The document cites statistics from Public
Works Financing statistics that say there were approximately 380 water and wastewater projects
either planned or completed with private-sector participation worldwide at the end of last October,
accounting for a total cost of $74 billion.
Azurix is the pick of the week for Renaissance Capital, a Greenwich, Conn.-based asset management
firm that runs the IPO Fund (IPOSX: news, msgs).
At least Azurix was able to hang above its offering price. According to Thomson Financial Securities
Data Corp., one in three 1999 Internet IPOs are trading below their offering prices, and more than
half of May's Net deals are below the offering price.
The first-day pop for Internet IPOs has also subsided, declining to an average of 88 percent in the
second quarter, compared to 158 percent in the first quarter, the research company said.
Darren Chervitz is a reporter for CBS MarketWatch.