Fueled by rising prices and demand for electricity, Reliant Resources, Inc. stock Tuesday rose 12.03% to $33.61/share, after an initial public offering Monday priced at $30/share.
The 52 million share offering raised nearly $1.5 billion for the company. The offering price was raised several times reflecting strong investor interest in new energy issues in an otherwise weak new issues market.
Houston-based Reliant Resources, 80% owned by Reliant Energy Inc., provides electricity and energy services with an emphasis on the competitive segments of the electric power industry in the US and Europe.
The company has 12,000 Mw of power generation capacity in operation or under construction in the US and 3,476 Mw in operation in Europe. Reliant Resources also trades and markets power, natural gas, and other energy-related commodities and provides related risk management services.
The company said it also intends to sell retail electric services in Texas when the market opens to full retail competition in January 2002.
Lead managers for the offering were Goldman, Sachs & Co. and Credit Suisse First Boston. Co-lead managers were ABN AMRO Rothschild LLC, Banc of America Securities LLC, Deutsche Banc Alex. Brown, Merrill Lynch & Co., and UBS Warburg.