(Reuters) – Cement maker Summit Materials Inc’s initial public offering was priced at $18 per share, according to a market source, valuing the Blackstone Group-controlled, company at $1.67 billion.
The company raised about $400 million after its offering of 22.2 million class A shares was priced at the midpoint of the expected range of $17-$19 per share.
“It has been attractively priced… it’s a specialty IPO and is in a high-growth sector”, said Josef Schuster, founder of IPOX Schuster, a Chicago-based IPO research firm.
Denver, Colorado-based Summit Materials sold all the shares in the offering.
The company was founded in 2009 by current Chief Executive Tom Hill and a group of investors, including Blackstone and Silverhawk Capital Partners LLC.
Since Blackstone’s initial investment, Summit Materials has acquired 34 cement, asphalt and concrete companies, according to a regulatory filing. (bit.ly/1wtqeOE)
The company gets 56 percent of its revenue from private construction, with the rest coming from public infrastructure projects.
Blackstone’s stake in the company will fall to 57.4 percent from 79.5 percent after the offering, assuming that underwriters fully exercise their option.
Summit Materials reported revenue of $1.2 billion for the year ended Dec. 27 and net income attributable to the company of $2.5 million on a pro forma basis.
The company said it expected to debut on the New York Stock Exchange on Thursday under the symbol “SUM”.
Summit Materials said it would use the proceeds from the offering to repay debt and for general corporate purposes.
The company had a total debt of about $1.1 billion as of December 2014.
Citigroup and Goldman Sachs are the lead underwriters for the offering.