Wood products maker Boise Cascade Co. (NYSE: BCC) held its initial public offering (IPO) this morning, selling 11.76 million shares at an IPO price of $21. Yesterday the company raised its IPO price range from $16 to $18 to a new range of $18 to $20. Today’s offering price beat even that higher estimate.
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.