American Water Works IPO

April 2008 | IPO News Alert

On April 23 Germany's second largest power company, RWE, listed a 36% stake in American Water Works on the New York Stock Exchange. The IPO raised US$1.2bn with each of the 58mn shares on offer sold at US$21.50. RWE had originally hoped to receive US$24-26 per share. Although the company has not commented on why the price was lower or why the number of shares was reduced, analysts speculate that it was due to low investor interest on the back of US market volatility. Indeed, the IPO was delayed in November of last year due to turmoil in the US

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