White Cap Shares Surge 34% in IPO

Shares of White Cap Industries Inc. surged 34% during the Costa Mesa contractor supply company’s first day of trading. White Cap sold 4 million shares at $18 each to underwriters in its initial offering and the stock advanced through the day to close at $24.13 in heavy Nasdaq trading. The stock’s strong debut was fueled by the bullish prospects for the construction industry, as well as the company’s upbeat prospectus showing that same-store sales advanced 28% in the fiscal 1997 fourth quarter ended March 31. Founder Greg Grosch, who still owns 26.2% of the 21-year-old company, saw the value of his nearly 2.7 million shares jump to $65.1 million during the day.