Intrepid Potash initial public offering prices above range

Last week, Intrepid boosted the offering to 30 million shares at $27 to $29 apiece. The company previously expected the offering to total 24 million shares and price between $24 and $26 per share.

Based on the offering price, the IPO raised $960 million before expenses. Intrepid said about $757.4 million will be used to acquire all the assets, other than cash, of predecessor company Intrepid Mining LLC. Remaining proceeds will be used to repay debt and to fund production expenses and other growth opportunities.

According to its prospectus with the Securities and Exchange Commission, Intrepid is the country's largest producer of muriate of potash, or potassium chloride, a fertilizer that helps regulate plants' physiological functions and improves plant durability.

Demand for potash has been driven by rising food consumption worldwide and rising demand for ethanol, which is made from corn.

Some in the industry think potash prices may hit $1,000 per metric ton by the end of this year, according to a recent report from RBC Capital Markets.

Goldman, Sachs & Co., Merrill Lynch & Co., Pierce, Fenner & Smith Inc., Morgan Stanley, RBC Capital Markets and BMO Capital Markets are underwriting the offering. The underwriters have been granted the option to buy up to an additional 4.5 million shares to cover any overallotments.

Shares will trade under the ticker symbol "IPI."

Intrepid is the first of five deals expected to price this week more than the total number of IPOs last month.

Other IPOs scheduled are water utility American Water Works; visual effects developer Digital Domain; mortgage real estate investment trust Hatteras Financial; and oil and gas company Whiting USA Trust I.