FleetCor Rises After $292 Million IPO as Three Offerings Cut

FleetCor Technologies Inc. (FLT), the provider of corporate charge cards backed by Summit Partners and Bain Capital LLC, advanced after its $292 million initial public offering, while the prices for three other IPOs were slashed.

FleetCor, which earns a fee when drivers of commercial fleets use the cards for approved expenses such as food and fuel, sold 12.68 million shares at $23 each yesterday after offering them for as much as $26, according to data compiled by Bloomberg. The Norcross, Georgia-based company’s shares climbed 18 percent to $27.25 in New York Stock Exchange trading today.

The offering was one of four U.S. initial sales yesterday in the busiest week for deals since 2007, data compiled by Bloomberg show. Walker & Dunlop Inc. (WD), RigNet Inc. and Gain Capital Holdings Inc. (GCAP) completed their sales after offering discounts of at least 25 percent, while IPOs from BG Medicine Inc. (BGMD) and Swift Transportation (SWFT) Co. were pushed back even as the Standard & Poor’s 500 Index (SPX) traded at a two-year high.

“The IPO market feels tired,” said Timothy Cunningham, a money manager at Santa Fe, New Mexico-based Thornburg Investment Management, which oversees about $70 billion. Investors are “looking down the list and thinking, the market’s had a big run, and how risky do I want the portfolio to be,” he said.

JPMorgan Chase & Co. (JPM) and Goldman Sachs Group Inc. of New York led the offering for FleetCor, which intends to use the proceeds to repay debt, its filing with the Securities and Exchange Commission showed.

Private Equity

Summit Partners planned to sell 5.1 million shares in the IPO to trim its ownership to 30 percent, the prospectus said. Bain Capital intended to reduce its stake to 15 percent from 18 percent. Both private equity firms are based in Boston.

Walker & Dunlop raised $100 million after the commercial real-estate lender sold 10 million shares at $10 each. The Bethesda, Maryland-based company originally offered the shares for as much as $16 apiece, according to Bloomberg data.

RigNet (RNET), the Houston-based provider of communication network infrastructure for the oil and gas industry, sold $60 million of shares at $12 each, less than the $14-to-$16 range it sought from buyers, data compiled by Bloomberg show.

Gain Capital, the online provider of foreign-exchange trading services, raised $81 million after the Bedminster, New Jersey-based company failed to sell as much as $165 million of shares in its IPO, Bloomberg data showed.

‘Price Sensitivity’

Walker & Dunlop slipped 1 percent to $9.90, while Gain Capital fell 1.7 percent to $8.85. RigNet gained 4.6 percent to $12.55 in Nasdaq Stock Market trading.

“There was some price sensitivity,” Glenn Stevens, president and chief executive officer of Gain Capital, said in a telephone interview from the NYSE. “There are quite a few IPOs that are pricing below the range. The process wasn’t to manage for today’s price, but to manage for the price in the next six quarters.”

Gain Capital’s IPO came after FXCM Inc. (FXCM), the New York-based provider of Internet-based currency trading, raised $211 million earlier this month. FXCM has fallen 9.3 percent since its debut.

BG Medicine of Waltham, Massachusetts, delayed its $71 million offering yesterday, data compiled by Bloomberg show.

Swift Transportation, the largest truckload carrier in North America, also delayed its $1 billion offering to today, according to data compiled by Bloomberg. The IPO would be the second largest in the U.S. this year after Detroit-based General Motors Co.’s (GM) $18.1 billion offering, the data show.

The S&P 500 climbed for a sixth straight day yesterday, advancing 0.1 percent to 1,241.59 as Commerce Department figures showed retail sales beat estimates. The benchmark gauge for U.S. equity has risen 19 percent since Federal Reserve Chairman Ben S. Bernanke indicated on Aug. 27 that he was considering pumping more cash into financial markets through bond purchases.

To contact the reporters on this story: Lee Spears in New York at lspears3@bloomberg.net; Cecile Vannucci in New York at cvannucci1@bloomberg.net.

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

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