Energy-Infrastructure Firm AEI Withdraws IPO-Credit Suisse

   DOW JONES NEWSWIRES 
 

Energy-infrastructure company AEI withdrew its initial public offering Thursday night, according to Credit Suisse Group (CS), one of the underwriters.

Earlier Thursday, AEI scaled back plans for the IPO, reducing the number of shares 58% to 21 million and the expected price to a range of $12 to $13 from a range of $14 to $16.

The biggest change in terms was in the number of shares being sold by AEI's private-equity owners. In the original IPO prospectus, 33 million shares - two-thirds of the total - were on the block from private funds managed by emerging-markets investment specialist Ashmore Group PLC. None of those proceeds would have gone to AEI, which was selling 16.7 million shares. Under the new terms, the company was to sell 20 million shares, with only 1 million shares coming from private-equity funds.

AEI owns power and natural-gas assets in emerging markets such as Latin America and Asia. Revenue had been growing rapidly until this year, when it declined 20% in the first half of 2009 on currency devaluations and lower pricing. Net income during that period climbed 59% because of a decline in deducted profits from noncontrolling interests.

The offering was being managed by Credit Suisse, Goldman Sachs Group Inc. (GS), Citigroup Inc. (C) and JPMorgan Chase & Co. (JPM).

AEI's was the third IPO scheduled this week. Two others started trading Wednesday, with opposite results. Vitamin Shoppe Inc. (VSI), the first U.S. IPO of a retail store since in two years, saw shares close up 5.6%, while Addus HomeCare Corp.'s (ADUS) shares dropped 15%. Addus provides in-home care for adults, ranging from bathing infirm people to nursing care after acute illnesses.

-By Lynn Cowan and Kathy Shwiff, Dow Jones Newswires; 212-416-2357; [e-mail]