AZ Electronic Said to Get Orders for All Stock at New IPO Range

AZ Electronic Materials, the chemical maker controlled by private-equity firms Carlyle Group and Vestar Capital Partners, has drawn orders for all shares in its $700 million London initial public offering at the narrowed price range, said two people familiar with the transaction.

Banks managing the IPO are selling shares for 240 pence to 250 pence apiece, and will stop taking orders at 4 p.m. in London today, said one of the people, who declined to be identified because the information is private. The AZ shares had previously been offered for 200 pence to 280 pence each.

The company yesterday increased the size of its IPO by 40 percent to $700 million, according to terms of the sale obtained by Bloomberg News. AZ is raising $400 million while its existing shareholders plan to sell $300 million of shares, including the over-allotment option, terms show.

Carlyle and Vestar are each selling $137 million and AZ’s management plans to sell a further $26 million, the terms show. The two private-equity firms will each retain a stake of about 21.4 percent in the company, according to the terms.

Carlyle paid about 518 million Swiss francs ($525.6 million) to buy AZ from specialty chemical maker Clariant AG in 2004. Vestar purchased a stake in the company from Washington-based Carlyle in 2007.

AZ is scheduled to start conditional trading tomorrow. Deutsche Bank AG (DBK), Goldman Sachs Group Inc. and UBS AG (UBSN) are managing the IPO.

Over-allotment options allow underwriters to purchase additional shares at the original IPO price after the stock starts trading.

To contact the reporters on this story: Zijing Wu in London at zwu17@bloomberg.net; Sarah Jones at sjones35@bloomberg.net

To contact the editors responsible for this story: Daniel Hauck at dhauck1@bloomberg.net; David Merritt at dmerritt1@bloomberg.net

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