The share price of Tampa-based Quality Distribution Inc. rose sharply in its Nasdaq Stock Exchange debut Friday closing at $18.75, 10 percent above its $17 offering price which was at the high end of the opening range of $15 - $17/share. About 7 million shares were sold raising about $132 million.
This offering comes on the heels of a successful IPO November 1 for Overnite Corp. which rose almost 18 percent over its opening price on opening day.
Quality Distribution is a bulk tank truck company, that ships liquids and chemicals for companies including Dow Chemical Co., Procter & Gamble Co. and Dupont Co.
The company was previously known as MTL and was publicly traded from 1994 until 1998, when Apollo Management LP took it private in a buyout. Apollo still controls a majority of the shares after the IPO.
Wall Street pundits say this successful IPO shows interest among investors for well established and profitable companies in contrast to IPOs of the 90’s which became part of the dot-com meltdown and current speculative biotechnology offerings which have had to endure lower opening price expectations.
For the first nine months of this year, Quality posted net income of $6.4 million, up from a $39 million net loss last year. Revenue for the period rose to $426.3 million from $390.3 million, according to company reports.
