Hoping to follow in the footsteps of successful initial public offerings for organic food companies earlier in the year, Amira Nature Foods Ltd., (NYSE: ANFI) an Indian specialty rice company, began trading slightly up, after pricing significantly below its expected range.
The shares priced at $10, far below the expected range of $13 to $15. The stock hovered just above $10 in morning trading. The company sold 9 million shares, raising $90 million.
The Dubai company sells packaged Basmati rice and long-grain rice. It plans to use the proceeds from the transaction to buy subsidiary Amira Mauritius.
Earlier in 2012, organic food companies Annie Inc. (Nasdaq: BNN&) and Natural Grocers by Vitamin Cottage Inc. (Nasdaq: NGVC) enjoyed successful public debuts, and both stocks are up since going public. Annie shares started trading at $19, and on Oct. 10 were trading at $45.08 per share. Natural Grocers started trading at $15, and on Oct. 10 were trading at $22.42. See previous coverage of Annie’s here.
Amira’s IPO comes after volatile markets have caused some companies, such as restaurant and arcade developer Dave & Buster’s Entertainment Inc., to cancel or reschedule IPOs.
Amira Nature Foods is the first Indian company to list its IPO on NYSE Euronext markets since the listings of Genpact Limited (NYSE: G) and Sterlite Industries India Limited (NYSE: SLT) in 2007.
UBS Investment Bank and Deutsche Bank acted as lead underwriters on the deal.