A strong opening day for AZEK
The AZEK Company shares jumped 18% on the New York Stock Exchange on Friday, the first day of trading for the building product manufacturer known for its composite decking and railings.
The Chicago-based AZEK began the day at $23 -- above its previously announced range of $19 to $21 -- and finished the day at $27.08. With the 18% surge in shares of AZEK, the company raised $764.8 million.
CEO Jesse Singh told Yahoo Finance that the company was riding momentum into the pandemic, and that the IPO marks a "next step" for the company, which has grown steadily over the past decade.
The company's growth has been fueled partly by the rise of outdoor living. One of the key moves for the company was the purchase of composite deck company TimberTech in 2012. In May of 2018, the company bought Versatex, maker of exterior trim, mouldings and other building products.
AZEK Company's main product is composite decking. And in a decking market that is 80% natural wood, according to Singh, there is a high ceiling for growth.
Singh also said the money raised from the IPO will be used to pay down the company's debt.
AZEK Company operates seven manufacturing and recycling facilities in the United States. The company employs about 1,500 people.
AZEK’s products are marketed under several brands, including AZEK and TimberTech for residential building materials, Scranton Products for commercial building materials, and Vycom for industrial building materials.