BUZZ-Ryerson Holding shares melt as equity raise disappoints

Wed Jul 20, 2016 11:10am EDT
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** Ryerson Holding shares plunge for second straight day and breach issue, as long-only investors shun co's equity follow-on

** Stock drops nearly 14 pct to a 1-mth low on session; 4.5 mln shares have traded, 9x their avg 30-day volumes

** Metals processor offers 5 mln shares at $15.25, a 6.2 pct discount to RYI's Tuesday close

** Pricing represents an even wider discount of 21 pct to stock's $19.40 last sale on Monday prior to launch

** Order book dominated by hedge funds, a syndicate source familiar with the transaction said

** Ryerson's narrow shareholder base and its stock's heady run dampened long-only account appetite

** Co's shares have surged this year alongside the rally in steel prices. RYI last down 10.6 pct to $14.55, still well above its Jan low of $2.53

** Company updated Q2 guidance in conjunction with the launch

** Ryerson intends to use deal proceeds to repay debt, including its outstanding senior notes due 2018