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HD Supply Holdings to Start trading at 10:20 EST Thursday

HD Supply Holdings (NASDAQ: HDS) is set to begin trading on the NASDAQ today at 10:20 EST. The IPO will open for bids at 10:05. The IPO priced well below its intended range due to market conditions.

The company raised about $957 million in the offering–considerably lower than it had hoped. Shares priced at $18 each. The company was hoping for $22 to $25 per share. The volatile equity markets, interest rate fluctuations due to the Fed’s indication that it will taper asset purchases, and HD Supply’s high debt load are said to be factors in the disappointing IPO price.

The Atlanta based construction supply company hoped that with the rapid rebound in the housing market, now would be the right time to go public. At the $18 price, private equity backers will lose money. They reportedly paid $19.99 per share for their stake in the company.

The company reported $8 billion in revenues for the fiscal year ending February 2013–a year over year increase of 14 percent. Adjusted EBITDA rose to $683 million–a year over year increase of 34 percent.

Underwriters for the IPO included Barclays, JPMorgan Chase, and Credit Suisse.

Disclosure: At the time of this writing, the author had no position in the mentioned equities.

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