AZ Electronic Surges in Debut After $609 Million IPO

AZ Electronic Materials, the chemicals maker partly owned by Carlyle Group, jumped 6.3 percent after its 383 million-pound ($609 million) initial public offering.

The stock rose 15 pence to 255 pence in London trading. AZ sold shares for 240 pence each in the IPO, the Luxembourg-based company said in a statement today. AZ will get 251 million pounds in the IPO and owners including private equity firms Carlyle and Vestar Capital Partners the remainder.

“We are delighted with the outcome of the IPO which received an excellent response from major institutions,” Geoff Wild, AZ’s chief executive officer, said in the statement. The IPO “demonstrates investors’ confidence in our business.”

Carlyle and Vestar will each keep a stake of about 21 percent in AZ, according to a term sheet for the IPO. Depending on demand, the shareholders may sell an additional 57 million pounds of shares by exercising the over-allotment option.

Washington-based Carlyle paid about 518 million Swiss francs ($524 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.

Deutsche Bank AG (DBK), Goldman Sachs Group Inc. and UBS AG (UBSN) are managing the IPO, along with Collins Stewart Plc and Societe Generale SA. Rothschild is an adviser to AZ and its shareholders.

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

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

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