UPDATE: Blackstone Lists In $4.1 Billion New York IPO

Jun 22 2007 | 12:15pm ET

The Blackstone Group today sold $133.3 million shares in its initial public offering, raising more than $4.1 billion, but not without problems.

Shares were priced at $31 each and listed on the New York Stock Exchange under the symbol “BX.” The stock officially opened for trading at $36.45 at 9:52  this morning, but the National Stock Exchange and Alternative Display Facility jumped the gun, leading to trades topping $40 before the stock offically began trading.

The NYSE has asked both platforms to cancel the bad trades.

In legitimate trading, the stock has traded as high as $43, up almost 40% from its offer price.

The newly-public company now boasts a market capitalization of better than $40 billion. Most of the IPO proceeds go to founders Stephen Schwartzman and Peter Peterson, who will pocket a combined $2.33 billion.

Blackstone’s underwriters have a 30-day option to purchase up to 20 million additional shares. The firm intends to use a portion of the proceeds from the IPO and the concurrent sale of $3 billion of non-voting common shares to an investment vehicle established by the Chinese government to repay short-term borrowings, provide capital to invest in its existing businesses and to expand into new businesses.

Morgan Stanley and Citi are the global coordinators of the offering and representatives of the underwriters.


In Depth

Creating An Offshore Hedge Fund Dream Team: The Seven Key Players

Jun 26 2015 | 6:47am ET

If you want to set up an offshore hedge fund, like any great team, you’re only...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note