CLEVELAND, June 23, 2020 /PRNewswire/ — AZEK Company Incorporated, a leading US manufacturer of plastic and wood-plastic composite decking, moulding and trim, and other building components, announced this week that it had become a publicly traded company. AZEK, which plans to retire debt and make investments in its manufacturing capabilities, oversold its expected public offering, issuing $765 million of stock.
According to Freedonia Group industry analyst Matt Zielenski, this over-subscription of the company’s offering is not a surprise.
“AZEK has a leading market position in the rapidly growing plastic and composite decking product segments, and its brand names – such as AZEK and TimberTech – are some of the most recognizable in the industry. Investors have obviously noticed that demand for alternatives to traditional natural wood lumber decking has steadily risen over the past several years as homeowners increasingly for materials that offer the look of wood but require far less annual maintenance.”
Furthermore, noted Zielenski, the IPO was auspiciously timed, given that the COVID-19 pandemic has caused many homeowners – having spent many weeks at home – to think about investing in their properties, such as adding a deck.
“There is certainly an expectation that many Americans – once conditions become more like those of the pre-COVID-19 era – will seriously consider home improvement projects. In many cases, homeowners will look at installing a deck, which can be an ideal spot for ‘staycations’ or family gatherings. They can also add to the value of a home. For AZEK, their ability to offer consumers a low-maintenance product that allows people to spend more time on leisure pursuits will be a favorable selling point going forward.”
For more information about the US decking and other exterior products industry, see the Construction Studies page featuring the following industry studies by The Freedonia Group:
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SOURCE The Freedonia Group