HD Supply Holdings, the construction and industrial supplies company, was able to raise US$957.2 million for its initial public offer conducted last Wednesday. This was below the firm's expectations but recent market volatility coupled with higher interest rates curtailed the investor activities for the share sale.
The backers of the Atlanta, GA based company were Bain Capital, the Carlyle Group as well as the firm of Clayton, Dubilier and Rice. The volume of 53.2 million shares were priced at US$18 apiece.
This selling price was below the projected price range of between US$22 and US$25. Early during the trading day though, underwriters had begunto offer the shares between the price range of US$18 and US$20, according to a source familiar with the transaction.
The equity market swings that have occurred in the past few weeks were brought about by the recent remarks on the Federal Reserves decision to cut back on its stimulus policies and investments. This made investors more cautious of their activities while other companies were forced to cut back or even scrap their IPOs because of market uncertainty.
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