MN’s Second IPO In 2013 Aims To Raise Up To $105M

Although Norcraft will be only the second Minnesota company to complete an initial public offering this year, the state may be poised for more.

Eagan-based cabinet manufacturer Norcraft Companies, Inc., this week set the terms of its upcoming initial public offering (IPO); once completed, Norcraft will be only the second Minnesota company to complete an IPO this year.

Norcraft said it will make 5.9 million shares of its stock available for purchase, with an expected price of $16 to $18 per share. The company hopes to raise between $94 million and $105 million from the IPO, some of which it will use to pay off a portion of its $240 million debt and fund “formation transaction costs.”

The stock will be listed on the New York Stock Exchange under the symbol “NCFT.”

In May, Plymouth-based biotech company BioAmber became the first company in Minnesota to complete an IPO in 2013. Only two locally based companies completed traditional IPOs in 2012. 2011 and 2010 also saw two IPOs each, outpacing 2009, when there was only one, and 2008, when there were none.

While Minnesota has seen a slight increase in IPOs over the last few years, the country as a whole saw a recent spate of IPO activity.

According to a survey released last summer by New York-based financial advisory firm Pricewaterhouse Coopers, IPO activity jumped by 82 percent throughout the United States in the second quarter of 2013. The amount of IPOs listed on U.S. stock exchanges totaled 62 for the quarter, up from 34 listings in the first quarter of the year, and up 88 percent from 33 listings in the second quarter of 2012.

Some local experts believe Minnesota won’t be cut off from the national IPO activity increase, and that Norcraft may just be the start of a steady rise. To learn more about the outlook of MN’s IPO activity potential, click here.