UPS STOCK JUMPS FROM $50 TO $67 IN FIRST DAY
In the largest ever initial public offering of stock in the United
States, the Atlanta-based express delivery company United Parcel Service raised more than
$5.4 billion and watched as investors bid its stock up from $50 to above $67 per share on
Wednesday.
The price topped $70 per share in the morning but fell back and leveled off
in afternoon trading. Nearly 78 million shares changed hands.
Strong demand for UPS stock highlights the investment community’s belief that
the company stands to benefit handsomely from a surge in online retailing. Online sales
are expected to triple this holiday season over last year, according to experts, and UPS
has so far captured a majority of the delivery business generated by the ‘e-tailing’
craze.
UPS says it will use the IPO proceeds to buy back some stock from
existing shareholders. UPS also expects publicly traded equity to give the company
financial flexibility to make acquisitions.
Industry observers say a UPS acquisition spree will spur a new round of
high-level consolidation in the global transportation and logistics
industry.
UPS sold 109.4 million shares, or 9 percent of the company, to public
investors on the New York Stock Exchange. The "B" shares sold to the public are
valued the same as the "A" shares owned by UPS employees, but hold less voting
power.