CDW expects to raise up to $738 million in IPO

(Reuters) — Technology products retailer CDW Corp., which was taken private by Madison Dearborn Partners LLC and Providence Equity Partners for $7.3 billion in 2007, expects to raise up to $738 million in its initial public offering, according to a regulatory filing.

• Read the CDW filing

Private equity-backed companies made impressive debuts earlier this year as U.S. stock markets touched record highs. But markets have since eased on concern that the Federal Reserve will soon start to wind back its stimulus policies.

Vernon Hills,Ill-based CDW, which sells products from Apple Inc., Hewlett-Packard Co. and IBM Corp., among others, said it expected its offering of 27.9 million shares, excluding underwriters option, to be priced at between $20 and $23 each.

The company would be valued at about $3.87 billion at the top end of the range. It also had about $3.3 billion of long-term debt outstanding as of March 31.

The retailer, which sells both online and through its catalog, is offering 23.3 million shares, while stockholders are selling the rest.

Chicago-based Madison Dearborn, which is selling 2.4 million shares, is cutting its stake in the company to 36.9 percent from 45.9 percent. Providence Equity is selling 2.1 million shares, reducing its stake reduce to 32.6 percent from 40.6 percent.

CDW earned $247 million, excluding items, on sales of $10.1 billion in 2012.

CDW's private-equity owners will be hoping to match the success of recent private-equity backed IPOs including those of Bright Horizons Family Solutions Inc., Norwegian Cruise Line and Boise Cascade.

Other private equity-backed companies such as oil and gas company Antero Resources Corp. and industrial distribution company HD Supply are also gearing up for IPOs this year.

J.P. Morgan, Barclays and Goldman Sachs & Co. are leading the offering from CDW, which plans to list its shares on the Nasdaq under the symbol "CDW."