DOW JONES NEWSWIRES 
 

Kraton Performance Polymers Inc.'s initial public offering of at least 10.3 million shares priced at $13.50 each Wednesday, below the expected price range of $16 to $18.

The synthetic-rubber producer is the third IPO this week to price below the expected range. Hospital-staffing company Team Health Holdings Inc. (TMH)--seen as the most promising IPO of the week--also cut its offering size by a third Tuesday.

Team Health closed up 7% from its IPO price, while oil explorer Cobalt International Energy Inc. (CIE) closed flat in its debut.

This is the last week for IPO activity in the U.S. before the Christmas holiday. The market likely won't reactivate until late January.

Kraton, which will trade on the New York Stock Exchange under the symbol KRA, plans to use proceeds from its IPO for debt reduction and future growth. Many companies in recent months have sold shares so they can repay debt.

Kraton, owned by private-equity firm TPG Inc. and JPMorgan Chase & Co.'s (JPM) private-equity business, makes polymers for such industrial and consumer applications as footwear, adhesives, and paving and roofing supply.

The subsidiary of Polymer Holdings LLC was profitable in 2008 after losses the previous two years. Last month, it reported third-quarter earnings dropped by more than a third as sales slid.

-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357; Kathy.Shwiff@dowjones.com