Building products maker Ply Gem seeks $1.3 billion valuation in IPO

Mon May 13, 2013 8:17am EDT

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(Reuters) - Building products maker Ply Gem Holdings Inc said it expects to price the shares in its initial public offering at between $18 and $20 each, valuing the company at up to $1.3 billion.

Ply Gem could raise as much as $316 million in an offering of 15.8 million shares, according to a regulatory filing. (r.reuters.com/wep97t)

The North Carolina-based company, which makes exterior building products for homes, is looking to tap a strong appetite for housing-related stocks as the U.S. housing market recovers.

A number of private companies in the sector have been going public. Shares of plywood and lumber producer Boise Cascade Co (BCC.N) rose as much as 27 percent in their market debut in February. They are trading 43 percent above their IPO price.

Homebuilders Tri Pointe Homes Inc (TPH.N) and Taylor Morrison Home Corp (TMHC.N) have also had successful listings on the New York Stock Exchange. Another homebuilder, William Lyon Homes, expects to list on the NYSE this week.

Ply Gem, which initially filed to go public in May 2010, is backed by private equity firm CI Capital Partners. The firm will hold 68.4 percent of the company after the IPO, if the underwriters exercise full rights to buy additional shares.

The company reported a net loss of $28.1 million on net sales of $257.1 million for the quarter ended March 30, according to the filing.

Its shares have been approved to list on the New York Stock Exchange under the symbol "PGEM".

JP Morgan, Credit Suisse and Goldman Sachs are the lead underwriters to the offering.

(Reporting by Aman Shah in Bangalore; Editing by Sreejiraj Eluvangal)

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