Market interest in IPO shares of E&P company W&T Offshore Inc., Houston, (NYSE: WTI) was strong at pricing, but energy forecasts since then have affected the stock's price, says a source close to the deal. The IPO of 12.65 million shares was presold January 27 at $19 per share, which was higher than the expected $16.50 to $18.50 range. A first-day intraday high was $19.80 and closed at $18.21. Shares fell as low at $17.50 thereafter and shares had improved to $19.05 at press time. "The book of orders was very large," the source says. "There is just a lot of volatility right now in the energy market." A 30-day overallotment allows for underwriters to sell an additional 1.9 million shares but these shares might not be sold unless the market price strengthens. Selling shareholders included some members of W&T management along with Jefferies & Co. Inc., which came to own stock in W&T upon the exit of Bill Bethea, who formed Explore Enterprises of Louisiana LLC. Sellers shared in $240 million in gross proceeds. Tracy Krohn, founder of 21-year-old Gulf of Mexico-focused W&T, continues to own some 80% of WTI stock. "The market was very impressed with Tracy Krohn," the source says. "He turned a $15,000 investment into a company that now has a market value of $1.2 billion." Underwriters were led by Jefferies and Lehman Brothers Inc. Co-managers were J.P. Morgan Securities Inc., Raymond James & Associates Inc., RBC Capital Markets and Harris Nesbit. -Petroleum Finance Week