Blackstone's Gates Industrial Climbs in Debut After U.S. IPOBy
Auto-parts maker raised $731.5 million in IPO on Wednesday
Gates plans to use proceeds of sale to pay down debt
Gates rose as much as 1.8 percent to $19.35 in New York trading Thursday. It raised $731.5 million by selling 38.5 million shares for $19 apiece on Wednesday, according to data compiled by Bloomberg. Gates intends to use the proceeds to pay down debt.
The company has a market valuation of about $5.5 billion.
Blackstone acquired the company from Onex Corp. and Canada Pension Plan Investment Board for $5.4 billion in 2014. The firm will own about 86 percent of the shares and continue to have a majority of the voting rights after the offering.
Gates posted net income of $84 million on net sales of $2.7 billion in its fiscal 2016, according to regulatory filings. That compares to $51 million in net income on $2.7 billion in sales a year earlier.
Peter Grauer, chairman of Bloomberg LP, is a non-executive director at Blackstone.