If the underwriters exercise their overallotment option for an additional 1.76 million shares, Boise Cascade should see net proceeds of around $248 million. The company said it would use $25 million of the proceeds to repay borrowings on its revolving credit facility and the remainder would go for general corporate purposes.
Private equity firm Madison Dearborn Partners controls the company, with a stake of just over 50%. OfficeMax Inc. (NYSE: OMX) holds another 20% stake.
The timing of today’s IPO takes advantage of the uptick in home buying and rising house prices. Last week homebuilder Tri Pointe Homes Inc. (NYSE: TPH) held its IPO, going out at $17 a share, again above the estimated range. Since then the stock has hit a high of $19.99 and trades today at $18.52.
Shares of Boise Cascade are up about 23% in the first half-hour of trading this morning to $25.82.
Essential Tips for Investing (Sponsored)
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.