Stock Building Supply reduces size and price of IPO

dbracken@newsobserver.comAugust 8, 2013 

Stock Building Supply reported late Thursday that it has reduced the size and price of its initial public offering of stock, a sign that investor interest in the company has cooled.

The Raleigh-based company is selling 7 million shares at $14 per share. The company had previously targeted selling 8.82 million shares at between $16 and $18.

Stock hasn’t reduced the number of shares it is selling. But Stock’s owner, the Los Angeles private equity firm The Gores Group, has reduced the stake it plans to sell from 4.4 million shares to 2.59 million shares. The underwriters also have the option to purchase an additional 1.05 million shares at the IPO price.

Stock’s proceeds from the IPO are expected to be $57.4 million, below the $67.5 million the company had initially expected to earn after deducting fees and expenses.

Stock plans to use $46.2 million of the proceeds to pay down debt.

The company’s shares are scheduled to begin trading Friday on the Nasdaq exchange under the ticker symbol STCK.

Stock, founded in 1922 as Carolina Builders, sells windows, doors, roofing and other housing materials. The company is part of a wave of housing-related companies seeking to raise money in the public markets as housing prices rebound.

Stock now operates in 20 metropolitan areas and 13 states. It had 2,460 employees as of the end of last year.

The company posted net losses the past two years – $42.1 million in 2011 and $14.2 million last year – but Stock’s sales have been rising, increasing 24 percent to $942 million last year.

Stock reported in a recent regulatory filing that it expected to turn a profit in the second quarter of this year. It expects net income of between $1.3 million and $2.3 million, compared to a loss of $2.2 million during the same period in 2012.

Bracken: 919-829-4548

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