Intrawest Resorts Holdings, Inc. initial public offering fell short of expectations last week when the company’s shares debuted about 25 percent below their target range.
Shares, which began trading Monday under the ticker symbol SNOW on the New York Stock Exchange, opened at $12.05 or roughly 25 percent below the bottom of the $15 to $17 range targeted investment bankers. A syndicate of investment banks led by Goldman, Sachs & Co., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities and Bank of America/Merrill Lynch spearheaded the IPO, which led the underwriting. The S&P 500 index fell 2.2 percent Monday. While the index had recovered most of that ground by Friday afternoon, SNOW shares were trading just below $12.
Intrawest, which owns interests in seven, four-season mountain resorts, offered 3,125,000 shares of its common stock through the IPO, while controlling shareholder Fortress Investment Group LLC offered 12.5 million shares.
Intrawest generated revenues of $524.4 million in the fiscal year ended June 30, 2013. Roughly two thirds of the revenues came from its interests in seven four-season mountain resorts that attracted six million visitors. Those resorts include Steamboat Ski & Resort and Winter Park Resort in Colorado, Mont Tremblant Resort in Quebec, Stratton Mountain Resort in Vermont, Snowshoe Mountain Resort in West Virginia and half of Blue Mountain Ski Resort in Pennsylvania.
