Water infrastructure firm Core & Main valued at $7 billion as shares rise in debut

(Reuters) -Shares of Core & Main Inc, a water infrastructure company owned by private equity firm Clayton, Dubilier & Rice (CD&R), rose over 8% in their stock market debut, giving the company a market capitalization of $7 billion.

The stock opened at $21.70 per share compared with the initial public offering price of $20 per share.

Core & Main provides water, wastewater, storm drainage and fire protection products, and related services, to municipalities, private water companies and contractors. CD&R bought the company in a $2.5 billion deal from HD Supply Holdings in 2017.

CD&R will control about 79.6% of the total voting power of Core & Main after the offering, according to a filing earlier.

Core & Main raised nearly $698 million by selling 34.9 million shares at the lower end of its earlier price target between $20 and $23 each.

Goldman Sachs & Co, Credit Suisse and J.P. Morgan were the lead underwriters for the offering.

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