TODCO IPO a Success

Shares of offshore oil and gas driller Todco gushed in their market debut on Thursday, spurting more than 14 percent over their initial public offering price.

On their first day of trading on the New York Stock Exchange, shares of the Transocean Inc. subsidiary closed at $13.70, up $1.70, or 14.2 percent, from the IPO price of $12 per share set on Wednesday.

Transocean, the world's biggest offshore and gas drilling contractor, offered 12 million shares in the IPO.

Because Transocean was offering the shares, Todco will not receive any proceeds from the sale. After the IPO, Transocean will continue to own all of its outstanding class B stock and 95 percent of the voting power of all the outstanding common stock.

Morgan Stanley was the lead bookrunner. Other underwriters are Banc of America Securities, Citigroup Global Markets, Credit Suisse First Boston, UBS Securities and Simmons & Co International.

The underwriters have an option to purchase an additional 1.8 million shares from Transocean.

Houston-based Todco has said it owns or operates a fleet of 70 rigs.

Transocean will continue to provide contract oil and gas drilling services, but will have no U.S. inland marine or Gulf of Mexico shallow water jackup operations, Todco said.

Todco's main business is to contract its drilling rigs and work crews to independent oil and gas companies as well as for major international and government-owned companies.

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