Protection Products Distributor Core & Main Seeks US$802.5 Million IPO

Water and fire protection product distributor Core & Main Inc. launched its roadshow for its initial public offering. The company has been authorized to list its shares on the New York Stock Exchange under the symbol “CNM”.

The proposed offering eyes to raise at most US$802.5 million by issuing 34,883,721 common shares at an IPO share price pegged between US$20.00 and US$23.00. This puts the company’s valuation at US$7.5 billion.

Goldman Sachs & Co., Credit Suisse, and J.P. Morgan will act as lead underwriters for the offering. The company is expected to grant them a 30-day over-allotment option to purchase additional 5,232,558 shares at the IPO price, which could raise the proceeds to US$922.7 million at the top end.

The St. Louis-based distributor is owned by private equity firm Clayton, Dubilier & Rice when the latter acquired the waterworks division of industrial distributor HD Supply for US$2.5 billion in January 2017. The firm then renamed the acquisition to Core & Main.

The company said Clayton, Dubilier & Rice will now have a diluted 79.6% total voting power after the proposed offering.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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