NEW YORK—Fertilizer maker Intrepid Potash expects to raise about $559.8 million after fees and expenses from its planned initial public offering, according to a filing with the Securities and Exchange Commission on Monday.
The Denver-based company expects the offering to total 24 million shares and price between $24 and $26 per share. The estimated net proceeds assume an offering price of $25 per share.
Intrepid, which was formed in November 2007, plans to use proceeds from the offering to acquire all of assets, other than cash, of predecessor company Intrepid Mining LLC. Remaining proceeds will be used to repay debt and to fund production expenses and other growth opportunities.
According to its prospectus, Intrepid is the country's largest producer of muriate of potash, or potassium chloride, a fertilizer that helps regulate plants' physiological functions and improves plant durability.
Intrepid is led by Robert P. Jornayvaz III, who has served, directly or indirectly, as the manager of Intrepid Mining since its founding in 2000. He became chairman and chief executive of Intrepid Potash at its formation in November 2007.
In 2007, the company reported earnings from continuing operations of $29.7 million, compared with $24.1 million in 2006. Total sales rose to $213.5 million from $152.7 million in the prior year.
Goldman Sachs, Merrill Lynch and Morgan Stanley are serving as the IPO's lead underwriters. RBC Capital Markets and BMO Capital Markets are also underwriting the offering.
The underwriters have an option to buy up to 3.6 million additional shares to cover any overallotments.
Intrepid Potash plans to list its shares on the New York Stock Exchange under the symbol "IPI."
