Info tech company CDW rises in debut on the NasdaqJune 27, 2013 @ 8:13 am
NEW YORK (AP) - CDW's stock climbed Thursday in the information technology company's first day of trading on the Nasdaq.
CDW rose $1.48, or 8.7 percent, to $18.48 in late morning trading Thursday after rising as high as $18.67 earlier.
The offering of about 23.3 million shares was priced at $17 per share. That was at the low end of its projected range of $17 to $18. CDW Corp. raised about $396 million from the IPO.
The underwriters have a 30-day option to buy up to an additional 3.5 million shares.
CDW said in a regulatory filing that it plans to use part of the net proceeds to redeem $156 million senior subordinated notes. It intends to use $24.4 million in proceeds for a one-time payment related to the termination of a management services agreement. The company also plans to use some of the proceeds to exercise its right under an equity clawback provision related to $175 million senior secured notes.
CDW reported 2012 net income of $119 million on revenue of $10.13 billion. In 2011, the Vernon Hills, Ill.-based company had net income of $17.1 million and revenue of $9.6 billion.
The shares are trading under the "CDW" ticker symbol.
(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
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