Metals USA Holdings Corp. announced Tuesday that it is planning to raise $200 million in an initial public offering this week, according to Associated Press.
The company is being taken public by private equity firm Apollo Management LP, which owns more than 90 percent of the company. After the IPO, Apollo would own more than 60 percent of Metals USA.
Xplosive Stocks, an online financial publication, provides investors timely stock market information.
Sign Up Today for our Free Stock Newsletter
Metals USA plans to use the proceeds from the offering, which it estimates at about $182 million, to repurchase debt.
The company expects to offer 10.5 million shares this week, which it hopes will fetch $18 to $20 each. Underwriters led by Goldman Sachs can purchase another 1.6 million shares from Apollo if there is strong demand for the IPO.
In 2009, Metals USA earned $3.5 million, compared to $72.6 million the previous year. Revenue dropped in half to $1.1 billion, compared to $2.2 billion last year. It expects a loss from $400,000 to $1.2 million in the first quarter of 2010.
Metals USA plans to list on the New York Stock Exchange next week under the symbol "MUSA."
Sign up for the free Xplosive Stocks newsletter. Investors interested in receiving small cap stock alerts through the penny stock newsletter published by Xplosive Stocks can sign up for free by visiting our website.
About Us
Xplosive Stock is a leading stock web site that allows investors and interested parties to research stocks that are on the move. We focus on Xplosive Stocks and track small cap companies that are on the brink of a financial breakout. To feature a company on our website please contact us at the email listed below.
Please click here to read the full disclaimer.
