Installed Building Products Gains in First Day of TradingLaura Lorenzetti
Installed Building Products Inc., a provider of insulation services for residential properties, gained as much as 18 percent in its trading debut after pricing its initial public offering below the marketed range.
The shares rose 16 percent to $12.75 at 3:11 p.m. in New York for a market valuation of $367 million, after offering 7.45 million shares for $11 apiece. The offering was reduced from 9 million shares and below the marketed $14 to $16 range.
IBP, based in Columbus, Ohio, isn’t the first company the homebuilding industry to see a jump in its stock after facing reduced demand for its IPO this year. New Home Co. also priced its offering below the marketed range and has risen 14 percent since its Jan. 30 debut.
U.S. homebuilder stocks have struggled over the past year, trailing the broader market. The Standard & Poor’s Homebuilders Select Industry Index gained 11 percent over the past year, compared with a 20 percent increase for the S&P 500 Index.
The company is listed on the New York Stock Exchange under the symbol IBP. Deutsche Bank AG and UBS AG managed the offering.