Blackstone’s Summit Materials Gains in Debut After U.S. IPOLeslie Picker
Summit Materials Inc., which supplies asphalt, concrete and cement for construction, jumped in its trading debut after raising $400 million an initial public offering.
The shares rose 12 percent to $20.16 after the IPO was priced at $18 apiece. Majority owner Blackstone Group LP didn’t plan to sell any shares in the IPO and will have a stake of about 60 percent in the company after the offering, regulatory filings show. Summit Materials plans to use the proceeds to repay debt.
The company was founded more than five years ago by Chief Executive Officer Thomas Hill, along with Blackstone and Silverhawk Capital Partners, to roll up construction-materials companies. Denver-based Summit Materials has made 34 acquisitions since August 2009. In the four years through Dec. 27, Summit Materials’ revenue tripled to $1.2 billion amid a rebound in U.S. construction, according to the IPO prospectus.
Citigroup Inc. and Goldman Sachs Group Inc. managed the offering. The shares are listed on the New York Stock Exchange under the symbol SUM.