OfficeMax Rallies On Potential Boise Cascade Initial Public Offering

OfficeMax Rallies On Potential Boise Cascade Initial Public Offering
By Steve Morgan (Own work) [CC BY-SA 3.0 or GFDL], via Wikimedia Commons

The stock price of OfficeMax Incorporated (NYSE:OMX) climbed by 27 percent to $10.59 per share around 10:15 AM, ET on Friday at the New York Stock Exchange, following reports that Boise Cascade, a wood products manufacturer submitted an S-1 application with the Securities and Exchange Commission.

Play Quizzes 4

OfficeMax Rallies On Potential Boise Cascade Initial Public Offering

Before November 1, 2004, OfficeMax Incorporated (NYSE:OMX) was doing business as Boise Cascade Corporation. The company changed its name to OfficeMax Incorporated (NYSE:OMX) after the company sold its paper, forest products, and timberland assets for approximately $3.7 billion to Boise Cascade, LLC, a new company established by Madison Dearborn. OfficeMax Incorporated (NYSE:OMX) invested $175 million in Boise Cascade as part of the transaction.

Morningstar Investment Conference: What To Do During The Fed Rate Hiking Cycle

Federal reserveThe U.S. Federal Reserve is treading carefully with raising rates amid the widespread economic, macro and geopolitical uncertainties sweeping around the world. The Fed raised its target level as high as 20% in the early 1980s to deal with runaway inflation, but we're a far cry from that today — a time when inflation threatens Read More

Boise Cascade’s S-1 filing indicated a plan to raise $200 million in a public offering. The offering price and the schedule of the initial public offering (IPO) are not yet determined by the company. According to the filing, OfficeMax Incorporated (NYSE:OMX) owns a 20 percent stake in Boise Cascade, and it is expected to benefit from the company’s initial public offering.

KeyBanc Capital Markets analyst Bradley Thomas suggested that OfficeMax Incorporated (NYSE:OMX)’s investments in Boise Cascade could be worth $600 to $700 million, according to the report from Bloomberg.

On the other hand, David Strasser, analyst at Janney Capital Markets said Office Max owns approximately $110 million Series A, equity units, based on Boise Cascade’s filing. He believed that a payment has been, or will be made to Office Max. He also expects Office Max to receive more than $130 million in payment, and the company will continue to hold stakes in the company.

As of this writing, the stock price of OfficeMax Incorporated (NYSE:OMX) is up by nearly 19 percent to $9.75 per share.

Updated on

Marie received her Bachelors Degree in Mass Communication from New Era University. She is a former news writer and program producer for Nation Broadcasting Corporation (NBC-DZAR 1026), a nationwide AM radio station. She was also involved in events management. Marie was also a former Young Ambassador of Goodwill during the 26th Ship for Southeast Asian Youth Program (SSEAYP). She loves to read, travel and take photographs. She considers gardening a therapy.
Previous article Microsoft Sued Over False Advertising Of Surface Storage Space
Next article Apple vs. Samsung: Patent Battle Escalates

No posts to display