Boise Cascade Co.'s stock ended its first day on the New York Stock Exchange with a gain of 25.3 percent, fueled by a red-hot housing market.
The company offered 11.7 million shares at $21 a share. Closing price was $26.33 Wednesday afternoon.
Boise Cascade's timing for getting into the market "couldn't have been better," said Dave Petso, a Boise financial planner.
Boise Cascade makes wood products and distributes building materials. Housing is expected to grow as employment improves and as interest rates remain low, analysts say.
Boise Cascade has been owned by the private equity company Madison Dearborn Partners and OfficeMax for nine years. But owners decided to take about 25 percent of the company public just as the housing market and the company's own fortunes were improving.
An original initial public offering was expected in the $16 to $18 range. But interest in the stock brought the price up to $21 said John Sahlberg, company spokesman.
The company expects to net $228 million from the offering. About $25 million will go to repay debt. The remainder will be invested in the company.
The initial public offering opens the way for subsequent stock sales at the owners' choosing. The company named was changed from Boise Cascade LLC.
The company was hard hit during the recession, losing $358 million between 2008 and 2011.
By 2012, conditions had improved. Projected year-end earnings for 2012 are at least $39.2 million on sales of at least $2.76 billion, according to company filings with the SEC.