OfficeMax Rises on Possible Boise Payout From IPO
OfficeMax Inc. (OMX) rose to the highest level in 18 months after a company in which it owns a stake announced an initial public offering that could bring the office-supply retailer more than $300 million.
OfficeMax, the third-biggest U.S. office-supply store, advanced 12 percent to $9.22 at the close in New York, the highest price since May 12, 2011. The stock has more than doubled this year.
Boise Cascade LLC, which distributes building products through its subsidiaries, filed for an IPO yesterday after the markets closed, seeking to raise as much as $200 million. OfficeMax has a 20.4 percent stake in that company’s parent Boise Cascade Holdings, which could be worth more than $200 million when the company goes public, David Strasser, an analyst for Janney Montgomery Scott LLC, wrote in a note to clients.
OfficeMax, based in Naperville, Illinois, could see more than $130 million in payments from the IPO, including $110 million from equity and $23 million in dividends, he wrote.
Including OfficeMax’s stake in the public company, “Boise could be worth over $340 million for OfficeMax,” wrote Strasser, who recommends buying the shares.
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