Another initial public offering will make a splash in the market this week, and this one may have as much steam as Aquila Energy’s, launched last week (see Daily GPI, April 25). Reliant Resources Inc., the unregulated business unit of Houston-based Reliant Energy Inc. on Friday raised its estimated price range for its IPO by $2, putting the stock price in the $28-30 per share range.

About 52 million shares of common stock will be offered in the IPO in an attempt to initially raise $1.56 billion. If it succeeds, it would be one of the biggest IPOs of the year, energy or otherwise. Reliant Resources could have an initial market capitalization of $8.76 billion based on the price for 292 million outstanding shares. Its previous market potential was $8.12 billion.

The amended IPO prospectus was first filed with the U.S. Securities and Exchange Commission in October 2000, and Friday was the fourth time Reliant has changed the share price. Originally, it was $14. -$19 a share in December. At that IPO price, Reliant would have raised nearly $1 billion.

Reliant Resources sells power at prices determined by the market after acquiring and developing electric power generation facilities not subject to traditional regulation. It would use the proceeds from the IPO to repay debt to Reliant Energy, and also for working capital, capital spending and future acquisitions.

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