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Private equity-backed CDW cuts IPO size

27 Jun 2013

computers_lrgPrivate equity-backed technology products seller CDW Corp has reduced the size and pricing of its upcoming IPO.

CDW, which is backed by private equity firms Madison Dearborn and Providence Equity Partners, plans to raise $419.4m compared with the initial $641.7m target, according to a document filed with US securities regulators.

The company also cut the IPO price range to $17 to $18 per share from $20 to $23 per share previously and reduced the amount of shares to be floated by 16 per cent to 23.3 million as Madison and Providence decided agaisnt selling over 4.5 million shares.

Madison planned to reduce its stake from 45.9 per cent to 36.9 per cent through the share issue, while Providence expects to cut its interest from 40.6 per cent to 32.6 per cent.

CDW, which was bought out for $7.4bn in 2007, had earnings of $247m on sales of $10.1bn last year.

The decision to reduce the size of the IPO follows last week’s sell-off in global stock markets that followed the latest meeting of the Federal Reserve, which said it its stimulus programme would end next year if economic conditions permit.

Earlier this month CDW filed to raise up to $738m, up from $500m in its initial filing three months ago.

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