Edgen Group prices below range
April 26 (Reuters) - Edgen Group Inc (EDG.N), a provider of specialty pipes and valves to the energy sector, priced shares at $11 during its initial public offering, below its expected range on Thursday, according to an underwriter.
The Baton Rouge, Louisiana-based company priced 15.0 million shares, as planned, raising $165 million. The company, controlled by a set of investors including Jefferies Capital Partners, had expected to sell shares within a range of $14 to $16.
Proceeds will be used to pay back debt.
Edgen Group has sales and distribution operations in 15 countries and serves more than 2,000 customers. The company was incorporated in December 2011 after Jefferies Capital brought together two of its portfolio companies, Bourland & Leverich and Edgen Murray.
Edgen Group generated pro forma sales of $1.7 billion during 2011, up 33 percent from the year prior. It swung to a profit of $2.1 million, up from a loss of $71.8 million in 2010.
Edgen Group is the latest player in the energy supplier sector pursuing an IPO. Earlier this month MRC Global priced shares at $21, the bottom of its expected range. Shares closed Thursday at $20.09.
Jefferies, Morgan Stanley and Citigroup are underwriting the IPO. Edgen Group will list on the New York Stock Exchange under the ticker EDG.