Intrepid Potash (IPI) begins trading today

The highly anticipated IPO priced 30 million shares yesterday @ $32, above expectations of $29. The company is the American analog to Potash (POT), the Canadian fertilizer company that never pulls back. With a $66 billion market cap, POT is now second only to RIMM ($71 billion) in size among Canadian stocks.

This IPO has all the feel of the Visa (V) IPO last month, which is up 25% since its debut. Just as Mastercard (MA) dominated the market for demand in credit card transaction firms, shares of POT and Mosaic (MOS) have benefited from a dearth of publicly traded fertilizer companies. And IPI is the purest play of the three on potash. Wannabe investors on the sidelines who have been shaking their heads every time POT hits a new high have their chance to get in on the ground floor of a similar company.

POT’s awe-inspiring chart. The recent hyperbolic move equals a gain of 45% since March 20.



An increase in supply in fertilizer issues doesn't necessarily have to decrease demand for existing stocks. MA has continued to climb higher since V started trading.



Odds are that IPI will open much higher than $32. It might be tough to stomach "paying up" for it @ $45, but how many people passed at paying $100 for POT six months ago?