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Noranda’s (NOR) IPO adjustment makes the price-to-book value plummet from 13.9 to –5.1, increasing investor risk. |
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Noranda Aluminun prices at $8 per chare, $10mm shares, down from price range mid-point of $15 per share & 17mm shares |
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VALUATION RATIOS |
IPO Mrkt |
Price / |
Price / |
Price / |
Price / |
|
Cap (mm) |
Sales |
Earnings |
BookValue |
TangibleBV |
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OLD: $15 = price mid-point, 60.5mm shares |
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Noranda Aluminum (NOR) |
$908 |
0.8 |
-22688 |
3.2 |
13.9 |
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repay debt |
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285mm |
$15/1.08 |
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PRICED: $8 IPO price per share, 54mm shares |
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Noranda Aluminum (NOR) |
$430 |
0.4 |
-10760 |
3.2 |
-5.1 |
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repay debt |
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134mm |
$8.0/-1.67 |
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Metals USA (MUSA) |
$592 |
0.5 |
-185 |
3.4 |
5.5 |
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37mm shares, $16 price |
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Also compare with Metals USA (MUSA), trading around $16 down from IPO price of $21
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