CDW Corp is a US technology products retailer. On Wednesday, it announced decreased size of its initial public offering (IPO). The company priced the stock at the bottom end on already lowered range. This was according to an underwriter knowledgeable of the offering.
The company which is looking to raise around US$395 million had cut the number of shares for the IPO. It also decreased the pricing of shares per piece earlier in the day. This was done after the US stock markets remained volatile on concerns the US Federal Reserve may roll back its stimulus regulations.
The initial public offering was priced at US$17 per share piece. The number of shares set for IPO was also reduced by 16%. This would mean that 23.3 million shares were offered initially for the public. The price range of between US$17 and US$18 were lowered from the expected US$20 to US$23 per share piece.
The decrease of the offer was due to the withdrawal of the planned sale by Madison Dearborn LLC and Providence Equity Partners Inc., the company's private equity owners. The two companies withdrew a total of 4.5 million shares to sell. In 2007, Madison and Providence acquired CDW for a US$7.3 billion deal.
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