HD Supply may raise up to $1.33 billion in its initial public offering, according to a filing by the industrial distributor with federal regulators Thursday.
The company plans to sell 53.2 million shares priced between $22 and $25 each. It may raise more funds if underwriters exercise their option to buy nearly 8 million additional shares that they have been allotted as part of the deal. The stock would trade on the Nasdaq under the symbol "HDS".
HD Supply Holdings is the parent company of HD Supply Inc. It was formed in 2007 after a group of investors bought Home Depot Inc.'s former wholesale distribution business for $8.28 billion in cash and a 12.5 percent stake in the new company.
After the offering is complete, the investor group will hold approximately 59.5 percent of the company's common stock if underwriters do not exercise the option to buy additional shares.
Renaissance Capital says that at the midpoint of the proposed range, the company would be valued at $4.5 billion. It said HD Supply would represent the fourth largest IPO this year, behind companies such as Pfizer's spinoff of its animal health arm Zoetis Inc. and financial services company ING U.S.
HD Supply Holdings Inc. , based in Atlanta, provides a variety of products and services to about 500,000 customers in the maintenance, repair and operations, infrastructure and power and specialty construction sectors. Home Depot remains its largest customer and accounted for $296 million in revenue last year.
HD Supply reported a loss of $543 million on revenue of $7.03 billion in its most recent fiscal year.
The company plans to use the proceeds from the IPO to repay debt and for general corporate purposes.
BofA Merrill Lynch, Barclays, J.P. Morgan Securities LLC and Credit Suisse Securities (USA) LLC are the offering's lead underwriters.