$1.4 billion Huntsman IPO

Huntsman Corp. raised $1.4 billion in an initial public offering on Thursday, selling 60.3 million shares priced at $23 a share, the top range of the cover price.

Shares were scheduled to begin trading today on the New York Stock Exchange under the symbol "HUN."

The Salt Lake-based chemical company had originally expected to sell 55.1 million shares for $21 to $23.

"We are extremely pleased with where the stock priced," said Don Olsen, a senior vice president for the company. "What we expected to raise was $1.3 billion. The majority of what is raised will go to debt reduction."

Huntsman's offering comes during an upswing in the chemical industry. The volatile price of crude oil and natural gas — which are used as feedstocks for the production of many chemicals — have plagued the industry and squeezed profits.

Huntsman sells more than 2,000 products that are used in an array of applications that can be found in adhesives, durable and non-durable consumer products, electronics, medical components, paints, aerospace, automotive and construction parts.

The company's net loss for the first nine months of 2004 widened to $226.5 million on revenues of $8.4 billion, compared to a net loss of $214.2 million on revenues of $4.7 billion during the same period in 2003, according to a filing with the U.S. Securities and Exchange Commission. Net losses have been incurred in each of the past five fiscal years.

Net interest expense for the nine months ended Sept. 30 increased to $459.5 million from $260.7 million for the same period in 2003, the filing said.

Jon M. Huntsman Sr., chairman of the board, founded the company in the early 1970s, creating a container for McDonald's hamburgers.

The company has acquired a number of chemical operations and businesses. In the past six years, Huntsman has invested more than $500 million in capital expenditures and completed seven acquisitions.

Peter R. Huntsman, 41, is president and chief executive officer.

Huntsman operates 63 manufacturing facilities located in 22 countries and employs 11,600 people.

Underwriters for the offering included Citigroup, Credit Suisse First Boston, Merrill Lynch and Co. and Deutsche Bank Securities.

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