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A sailboat sails past the Stelco plant in Hamilton, Ont. in this Aug. 27, 2007 file photo.Adrian Wyld/The Canadian Press

Stelco has risen from the ashes again.

On the steel maker's second time going public on the Toronto Stock Exchange after emerging from creditor protection, Stelco Holdings Inc. had a good day.

Its initial public offering was priced at $17 a share, to raise about $200-million. But shareholders clamored to get in on the action, driving Stelco's shares up $2.20, or 13 per cent, to close its first day of trading at $19.20.

The Hamilton, Ont.-based steel maker has become a public entity again as demand for steel grows amid steady vehicle production.

The company is now owned by private equity firm Bedrock Industries LP, which plans to use some of the money raised to upgrade steel mills near Lake Erie and in Hamilton.

Stelco was granted protection under the Companies' Creditors Arrangement Act in September, 2014. It has since restructured and cleaned up its balance sheet by eliminating $3.1-billion in debt and $1.4-billion in pension and benefit obligations.

The company plans to become profitable by trying to gain market share in automotive steel.

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The Canadian Press

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