Everquest's IPO will give equity investors one of their first opportunities to take a concentrated stake in the fast-growing CDO market, provided they can muster trust in the company's CDO valuations.

Everquest, set up last September by Bear Stearns and CDO manager Stone Tower, filed for its IPO in early May, and Bear Stearns is underwriting the deal. Proceeds from the IPO are slated to pay down a $200 million credit facility provided by Citigroup, acquire more interests in CDOs, and support general corporate purposes. Bear Stearns did not respond to inquires about Everquest or the status of the IPO, noting that deal remains in the quiet period.

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