Business

Pinnacle IPO raises $580M

Pinnacle Foods, the Blackstone-owned maker of Hungry-Man dinners and Duncan Hines cake mixes, jumped 11 percent after raising $580 million in its initial public offering, which priced at the top end of the proposed range.

The stock closed at $22.21. The Parsippany, NJ-based company sold 29 million shares, equivalent to a 26 percent stake, for $20 each, after offering them for $18 to $20. The shares are listed on the New York Stock Exchange under the symbol PF.

Pinnacle, led by CEO Robert Gamgort, proceeded with its IPO after delaying it last year because of slumping consumer sentiment, sources said. Blackstone bought Pinnacle for $2.2 billion about six years ago, and combined the company with Birds Eye Foods in a $1.3 billion acquisition in 2009.

At the IPO price, the company has a market value of about $2.26 billion.