Graham Packaging readies for flotation

Related tags Graham packaging Initial public offering

Graham Packaging, a maker of plastic containers, has said it wants
to sell 16.7 million shares in a planned initial public offering.

Graham Packaging, the US-based maker of plastic containers, has said it wants to sell 16.7 million shares in a planned initial public offering.

The York, Pennsylvania-based company, which produces containers for Coca-Cola, H.J. Heinz, PepsiCo and other companies, disclosed the size and price for the first time in an amended prospectus filed with the Securities and Exchange Commission.

Under the terms, the company could raise as much as $275.6 million (€279.2m) in proceeds based on the high end of the projected price range.

The underwriters, led by Deutsche Bank Securities and Salomon Smith Barney, have the option to buy another 2.5 million shares to cover over-allotments, according to the filing.

Goldman, Sachs & Co., Lehman Brothers, and Morgan Stanley were also listed in the prospectus as underwriters.

Graham Packaging is seeking to list its shares on the New York Stock Exchange under the symbol "GPA."

The company filed an IPO prospectus with the SEC in May, hoping to raise as much as $287.5 million in the sale of common stock to the public.

After the offering, there will be about 45.4 million shares outstanding in the company, giving it an initial market capitalization of up to $749.1 million.

Graham, owned by the New York investment firm Blackstone Group, said that after the IPO, it will be the only publicly traded company in North America solely focused on customised plastic containers, the biggest market for which is the food industry.

Blackstone will hold a 49.1 percent stake in the company after the IPO, according to the amended SEC filing.

Related topics Processing & packaging

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