Continental Building Products looks set to IPO at $14 per share, below the expected range of between $16-18 as the company raised $165.2 million giving the company a value of c.$620 million. Continental Building Products was created from the sale of Lafarge’s North American Gypsum business that was sold in June 2013 to Lone Star for $700 million. <p>

The business previously generated EBITDA of c.$75 million. The IPO pricing will likely come as a disappointment and is likely to be reflective of a softening mood to wards residential construction assets in the US. However, given the strength of Eagle Materials’ gypsum business in the last quarter, it will be interesting to observe how Continental Building Materials trades.
<p><h5>David Holohan</h5>


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