HD Supply Holdings Inc, the industrial and construction supplies distributor, announced that it is planning to raise about US$1.33 billion through an initial public offer. The private equity owners of the company include Carlyle Group LP as well as Bain Capital LLC and it is seeking to gain the upper hand in the recovering housing market in the United States.
HD Supply is a former subsidiary of Home Depot Inc and it is offering 53.2 million shares pegged at a price range between US$22 and US$25 per share. At the top end of the range, the enterprise value would reach US$4.59 billion.
The said IPO comes at a time when the US housing market is recovering after its decline prior to the 2008 global recession. As the prices of new homes rise, contractors and construction materials also rise in demand accordingly.
HD Supply became private after a US$8.5 billion by a consortium of private equity firms such as Carlyle, Bain Capital as well as Clayton Dubilier and Rice LLC. The company operates about 600 stores across United States and Canada with revenues generated in 2012 amounting to US$8 billion.
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