Williams Pipeline units, each priced at $20, ended their first day of trading at $20 apiece. In after-hours trading, the units shed 4 cents. That's relatively good news on a day when stocks dipped at the end of one of Wall Street's weakest weeks.
"On a down day, they ended up not down,” Tulsa portfolio manager Jake Dollarhide said. "I think it further reinforces Williams' reputation.”
Williams Pipeline is the first major initial public offering of the year. Bad economic news has pushed share prices down and sent other fledgling issues to the sidelines.
In fact, Williams was the only one of three initial public offerings planned for this week that made it to market.
"It's a very skittish market, and there are no do-overs,” Dollarhide said. "When you do an IPO, you have one chance to raise money.”
Williams initially said it expected to price its new units between $19 and $21. Williams' status among natural gas operators allowed the company to get precisely the middle of that range, Dollarhide said.
The pipeline partnership is the third master limited partnership launched by Williams. Both of the previous issues have posted tremendous growth rates, Dollarhide said.
The stock traded higher even as Wiliams Pipeline President Phil Wright rang the opening bell Friday on the New York Stock Exchange. Company officials, most of whom attended the bell-ringing ceremony, were unavailable Friday for comment.
Williams spokeswoman Julie Gentz said the early momentum was "great.” But the price slid in the afternoon. More than 10 million units traded on the day.
Dollarhide, executive officer of Longbow Asset Management Co., said some of his clients are interested in purchasing units of Williams Pipeline Partners.
"We haven't bought any today,” he said. "But we'll definitely take a look at this in the secondary markets.”
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Williams Pipeline Partners executives applaud Friday during the traditional ringing of the opening bell at the New York Stock Exchange. Friday was the first day of trading for units of Williams Pipeline Partners. From left, Steve Snarr, senior counsel; Don Chappel, chief financial officer; Travis Campbell, vice president; Allison Bridges, vice president, Northwest Pipeline; Noreen Culhane, New York Stock Exchange executive vice president; Phil Wright, president; Steve Malcolm, Williams chairman and chief executive officer; Rick Rodekohr, vice president of finance and accounting; Scott Cole, manager of finance; Ed Brewer, director of marketing services; and Rand Clark, director of accounting. Photo PROVIDED
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