IPO Lifts Univar Free Float to 45%

Univar, the leading chemical distributor in the US and second-largest in Europe, began trading on the New York Stock Exchange on June 18 after an increased initial public offering generated $770 million in proceeds.

Private equity group CVC Capital Partners, which bought into the company in 2007, contributed 15 million shares to the 35 million placed with new owners at $22 apiece. The other private equity owner, Clayton Dubilier & Rice, which took a 42.5% stake in 2010, did not participate in the ipo.

Following the listing, which included 75% more shares than initially foreseen, the companies together own 55%. The remainder is in free float.
The over-allotment also increased in size to 5.25 million shares from the three million shares.

Simultaneously, Univar executed a private placement of $500 million with Singapore state-owned asset manager Temasek Holdings.
The distributor based near Chicago said it would use the proceeds of the stock launch to pay down debt of more than $650 million as well as making a payment to its private equity owners totaling $26 million.