Installed Building Products, the second largest new residential insulation installer in the US, raised $82 million by offering 7.5 million shares at $11.00, below the range of $14 to $16. The company originally planned to sell 9 million shares, of which 2.25 million shares (25%) were to be sold by insiders. Late Wednesday, the company eliminated the insider selling and bumped up the number of primary shares offered to 7.5 million (from 6.75 million). At pricing, Installed Building commands a market value of $324 million, 25% below its originally proposed valuation.
Installed Building Products, which was founded in 1977 and booked $404 million in sales for the 12 months ended September 30, will list on the NYSE under the symbol IBP. Deutsche Bank, UBS Investment Bank acted as joint bookrunners managers on the deal.
Installed Building Products is the third housing-related IPO to list in the US in 2014, following recent IPOs from drywall manufacturer Continental Building Products (CPBX; up 24%) and California homebuilder The New Home Company (NWHM; up 9%). Both Continental Building Products and The New Home Company also priced below their proposed IPO price ranges, but traded up 9% and 11%, respectively, on the first day of trading.
