MEMPHIS, Tenn. - The parent company of Memphis-based ServiceMaster Co. LLC, based here, began trading on the New York Stock Exchange Thursday, June 26, in an initial public offering of its common stock, reports the Memphis Daily News
The move to the market comes a day after ServiceMaster Global Holdings Inc. announced it was pricing the offering of 35.9 million shares at $17 per share. The pricing was below analysts' estimates of $18 to $21 per share.
The shares opened at $17.45 when trading began Thursday on the New York Stock Exchange under the ticker symbol SERV.
The holding company plans to use the net of what it makes to pay down debt and pay fees to some of its shareholders from a note due 2020 that was issued by ServiceMaster Co. LLC, the subsidiary of the holding company, the newspaper reports
The offering is being made through an underwriting group led by J.P. Morgan Securities LLC, Credit Suisse Securities USA LLC, Goldman Sachs & Co. and Morgan Stanley & Co. LLC.
The terms could change with the underwriters being granted a 30-day option to buy up to an additional 5.3 million shares of common stock.
ServiceMaster Global Holdings went private in 2007 when it was acquired by the private equity firm Clayton, Dubilier & Rice and investors for $5.5 billion.
Read the complete article in the Memphis Daily News here