Computer aftermarket seller CDW also priced its IPO below expectations at $17, at the low end of the range of $17 to $18. Initially, the company had planned to price its shares at between $20 and $23, but lowered its expectations a day before going public.
Private equity sponsors
Madison Dearborn Partners LLC
Providence Equity Partners Inc.
did not sell shares, but their stake will be diluted. Madison Dearborn's stake decreased from 45.9% to 39.6% and Providence's stake went from 40.6% to 35%.
At the IPO price of $17, Madison Dearborn's 66.7 million shares are valued at $1.13 billion and Providence's 59 million shares are valued at $1 billion. Underwriters have an option to purchase nearly 3.5 million shares.
Vernon Hills, Ill.-based CDW was taken private by its private equity sponsors in May 2007 for $7.38 billion. The sponsors invested $2.4 billion in equity and financed $4.98 billion with debt, The Daily Deal previously reported.
CDW posted adjusted EBITDA of $766.6 million on net sales of $10.1 billion in 2012, up from adjusted EBITDA of $717.3 million on net sales of $9.6 billion in 2011.
Lead underwriters for HD Supply's offering are
Bank of America Merrill Lynch
JPMorgan Securities LLC
Credit Suisse Group
(CS - Get Report)
Lead underwriters for CDW's offering are
(JPM - Get Report)
, Barclays and
Goldman, Sachs & Co.
(GS - Get Report)
Written by Richard Collings and Taina Rosa