Continental Resources Inc., an independent oil and gas exploration and production company in Oklahoma, was expected to begin trading Tuesday after pricing its initial public offering slightly below its expected range.
The company anticipated its shares to price between $16 and $18 per share, but late Monday the IPO of 29.5 million shares was priced at $15 per share.
The shares are expected to begin trading Tuesday on the New York Stock Exchange under the symbol CLR.
The offering includes 20.7 million sold by Continental Chairman and Chief Executive Harold G. Hamm. At the IPO's closing, Hamm will own about 123 million shares of Continental's outstanding stock, representing a 73.2 percent stake in the company.
Continental plans to use net proceeds from the offering to repay outstanding debt under its revolving credit facility. The company will not receive any proceeds from shares sold by Hamm, who has granted the underwriters a 30-day option to purchase up to an additional 4.4 million shares of common stock at the same price to cover over-allotments.
The offering is expected to close on Friday. JP Morgan Securities and Merrill Lynch are acting as joint book-running managers of the offering. Citi, UBS Securities, Deutsche Bank Securities and Raymond James & Associates are acting as co-managers.
In 2006, the company reported earnings of $253.1 million on revenue of $483.7 million.
Source : biz.yahoo.com
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