NRG Energy Inc. pulled off a respectable first three days on theNew York Stock Exchange, as the independent power subsidiary ofNorthern States Power saw its initial public offering (IPO) closewell above its set price of $15 when the markets closed lastFriday. NRG opened at $15.88 on Wednesday, and closed on Friday at$17 1/4 on a volume of 913,000 shares.
NRG jumped in where others have backpedaled recently in light ofstock market uncertainty and lagging interest in IPOs. Duke EnergyField Services (DEFS), a wholly owned subsidiary of Duke Energy andPhillips Petroleum, announced the postponement May 26 of its IPObecause of “volatile market conditions.”
The net proceeds to NRG are expected to be approximately $449million, which will be used to repay a loan from Citicorp USA Inc.The loan was used to fund a portion of the purchase price of the Cajunfacilities acquired in March 2000. The remaining net proceeds will beused for pending acquisition of generation assets from Conectiv, thedevelopment and construction of new facilities and additions toworking capital (see NGI, April 24).
NRG Energy is primarily engaged in the acquisition, development,ownership and operation of power generation facilities. NRG Energyowns all or a portion of 57 power generation projects with a totalgenerating capacity of more than 23,000 MW; its net ownershipinterest in these projects exceeds 13,000 MW.
Carolyn Davis, Houston
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