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TMS Sells Fewer Shares Than Expected

TMS International Corp., which is majority owned by buyout shop Onex Corp., sold fewer shares than expected at a price below the proposed range in its IPO, Reuters reported. The company sold 11.2 million shares for $13 each, raising $145.6 million in the offering, Reuters reported. TMS and a group of its stakeholders had planned to sell 6.25 million shares each for $15 to $17 each.

(Reuters) – TMS International Corp, which provides outsourced services to steel mills, sold fewer shares than expected at a price below the proposed range in an IPO on Wednesday, an underwriter said.

The company and its stockholders sold 11.2 million shares for $13 each, raising $145.6 million in the offering, according to the underwriter. TMS and a group of its stakeholders had planned to sell 6.25 million shares each for $15 to $17 each.

Most of the shares sold by TMS shareholders were expected to come from the majority stakeholder, private equity firm Onex Corp and its subsidiaries.

Glassport, Pennsylvania-based TMS said it was the largest provider of industrial outsourced services to North American steel mills, according to a filing with U.S. regulators.

Among various services, the company helps steel mills manage and prepare metal scrap, transport products, condition surfaces and find and buy cost-effective raw materials.

Shares of TMS are expected to begin trading on Thursday on the New York Stock Exchange under the symbol “TMS.”

Bank of America Merrill Lynch, Credit Suisse and JPMorgan led underwriters on the IPO.

(Reporting by Alina Selyukh; Editing by Gary Hill)