Boise Cascade shares rise as much as 27 percent in debut
(Reuters) - Shares of plywood and lumber maker Boise Cascade Co (BCC.N) rose as much as 27 percent to $26.75 on Wednesday in their New York Stock Exchange debut.
They last traded hands at $26.15 in early afternoon trading.
Boise Cascade, whose products are used in new residential construction and remodeling projects, capitalized on investor enthusiasm for a recovery in the U.S. housing market.
The Boise, Idaho-based company backed by private equity firm Madison Dearborn priced 11.8 million shares at $21, raising $247.8 million. It had raised its price range to $18 to $20 from an earlier range of $16 to $18.
In 2003, Boise Cascade acquired office supply OfficeMax Inc OMX.N for about $1.1 billion. One year later, the company sold its forest products and paper assets to Madison Dearborn for $3.7 billion.
OfficeMax continues to control about 20 percent of Boise Cascade.
Shares of OfficeMax were flat Wednesday at $11.19.
Boise Cascade is one of several recent housing-related IPOs. Tri Point Homes LLC (TPH.N), the first U.S. home builder to go public in almost a decade, raised $233 million in its January listing. Taylor Morrison Home Corp, which builds single family homes, filed in January to raise $250 million in a public offering.
The U.S. housing market has rebounded as low interest rates and rising rents have pushed many consumers to buy homes.
BofA Merrill Lynch and Goldman Sachs are lead underwriters on the Boise Cascade IPO.
(Reporting By Olivia Oran; Editing by Gerald E. McCormick and Nick Zieminski)