Pet food maker Blue Buffalo prices IPO at $20: Reuters

(Reuters) Pet food maker Blue Buffalo Pet Products Inc (BUFF.O) priced its initial public offering of common stock at $20 per share, valuing the company at about $3.92 billion.

The offering raised about $676.6 million after being priced above the expected range of $16-$18 per share.

All 33.8 million shares in the IPO are being sold by stockholders.

Blue Buffalo sells food for dogs and cats under brands such as Blue Basics. The Wilton, Connecticut-based company also sells cat litter and pet treats.

Blue Buffalo, which was founded in 2003 by current Chairman William Bishop, says on its website that its pet food uses real chicken, lamb or fish and no chicken or poultry by-product meals, artificial preservatives, colors or flavors.

However Nestle SA’s (NESN.VX) pet products company, Purina PetCare Co, questioned these claims in a lawsuit filed last year.

Blue Buffalo is backed by private equity firm Invus Group, which will have a 62 percent stake in the company after the IPO.

Blue Buffalo reported a 28 percent jump in revenue to $917.8 million for the year ended Dec. 31. Net income rose 30 percent to about $102 million.
The company is expected to list under the symbol “BUFF” on the Nasdaq on Wednesday.

JP Morgan, Citigroup, Barclays, Deutsche Bank and Morgan Stanley are among the underwriters to the IPO.