Investors in several of the nation's biggest publicly traded--and soon to go public--building material suppliers apparently all have decided that there's no time like the present to cash in.
On May 26, Gypsum Management & Supply (GMS) plans to see public trading of its shares begin on the New York Stock Exchange as part of an initial public offering. GMS has been owned since April 2014 by affiliates of AEA Investors LP. Pricing for the initial public offering of at last 7 million shares is planned for late today; shares are expected to be priced at $21 to $23 apiece, according to the New York Stock Exchange's IPO filings list. Another 1.05 million shares could be made available over the succeeding 30 days if demand warrants, the Tucker, Ga.-based firm said in a filing with the federal Securities and Exchange Commission (SEC).
On May 24, BMC Stock Holdings announced that some of its investment firms had sold 5.7 million shares at about $17 apiece, and BMC sold another 855,000 shares at the same price. One of the investment firms doing the selling was the Gores Group, an investment company that bought Stock Building Supply when it underwent Chapter 11 bankruptcy reorganization and then arranged for it to merge last year with BMC.
Those sales came several days after Builder FirstSource's (BFS) May 19 announcement that one of its investors, Warburg Pincus, planned to sell its 13.3 million shares of BFS stock and generate roughly $145 million after expenses and commissions. That sale would mean the Warburg Pincus Private Equity IX fund wouldn't hold any more BFS shares.