ChannelAdvisor, Ply Gem shares surge on first day of trading

jmurawski@newsobserver.com dbracken@newsobserver.comMay 23, 2013 

Wall Street

ChannelAdvisor CEO, Chairman and co-founder Scot Wingo, center, rings a bell as his stock begins trading during its IPO, on the floor of the New York Stock Exchange Thursday, May 23, 2013. ChannelAdvisor, from Research Triangle Park, N.C., is a provider of cloud-based e-commerce solutions.

RICHARD DREW — AP

Shares of ChannelAdvisor and Ply Gem Holdings surged on their first day trading on the New York Stock Exchange as they became the fourth and fifth Triangle companies to complete successful initial public offerings this year.

E-commerce company ChannelAdvisor got the biggest first-day pop, its stock jumping 32 percent Thursday. Shares of Ply Gem, a Cary company that produces vinyl siding and other products for home exteriors, rose 11 percent Thursday.

After deducting expenses, Ply Gem expects to raise $306.5 million after selling nearly 15.8 million shares. The stock, which trades under the ticker symbol PGEM, closed at $23.30, up $2.30.

ChannelAdvisor’s shares started trading at $14 Thursday morning, the high-end of the anticipated range. The Morrisville company sold 5.75 million shares, bringing its expected haul to about $80 million. Its stock, which trades under the ticker symbol ECOM, closed at $18.44.

“This is an important milestone, but it’s not the finish line,” ChannelAdvisor co-founder and CEO Scot Wingo said. “This gives us fresh capital to continue our expansion.”

Wingo rang the opening bill of the New York Stock Exchange and later joked about the experience that many regard as a crowning professional achievement.

“I rang the bell,” Wingo said. “I had the power of global commerce at my finger – for 10 seconds.”

Wingo said his company is in expansion mode as it angles for market share in a $600 billion annual industry that’s expected to double in the next several years.

Nearly 2,000 businesses use ChannelAdvisor’s software to integrate and manage online sales across multiple channels. Its software also enables businesses to automatically advertise products on Google and other search engines.

Wingo said everyone in the 405-employee company has stock options, a personal commitment that Wingo said differentiates him from some other entrepreneurs.

“It’s an ownership mentality,” he said. “It’s kind-of like having a house versus having an apartment.”

Ply Gem officials declined to comment Thursday. The company, which had 5,336 full-time workers at the end of March, initially filed plans to go public in June 2010 but never followed through.

Ply Gem revived its plans in April, its financial performance buoyed by the improving housing market.

The company generated $1.12 billion in sales last year, up 8.4 percent from 2011. Play Gem says it is No. 1 in the vinyl siding and No. 2 in vinyl and aluminum windows in the U.S. market.

The company, which owes $846 million, plans to use the proceeds from its IPO to pay down some of its debt and for general corporate purposes.

The two successful IPOs continue an unprecedented run for Triangle companies in the public markets.

Quintiles, a pharmaceutical services company based in Durham, raised nearly $950 million in an IPO earlier this month. Medical diagnostics company LipoScience and drug development company Chimerix have also gone public this year.

Just last week, PRA Holdings, another pharmaceutical services company in Raleigh, announced that it had made a confidential filing with the Securities and Exchange Commission for a possible initial public offering.

Murawski: 919-829-8932

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