NEW YORK (TheStreet) -- Metal service-center company Metals USA is planning an initial public offering of all or about 10.5 million shares of its common stock shares.
Metals USA expects to net about $171.6 million from the offering, with an initial public offering price per share of between $18 and $20, according to an SEC filing. There's been no public market for the company's common stock prior to the planned offering.
Metals USA sold more than 912,000 tons of metal products in 2009, including processed carbon steel, stainless steel, aluminum, red metals and manufactured metal components in the U.S., Mexico and Canada. Since the fourth quarter of 2008, Metals USA has implemented a series of cost-cutting measures that reduced its annual operating expenses by about $50 million.
Metals USA said that steel production in the U.S. declined by almost half to about 64 million tons in 2009, forcing a number of domestic mills to operate at or even below 50% capacity utilization at certain points during the year.
However, "we expect demand for steel to increase alongside improving general economic conditions," the company said in the SEC filing.
On March 19, Metals USA's board approved a 1.7431-for-1 split of the company's common stock.
-- Reported by Andrea Tse in New York
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