Manufacturers

Atkore International Sets Terms for IPO

As previously announced on tEDmag.com, Atkore International has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC), setting the terms for its initial public offering (IPO).

Nasdaq is reporting that the company plans to raise $252 million by offering 12 million shares (100% insider) at a price range of $20 to $22. At the midpoint of the proposed range, Atkore International Group would command a fully diluted market value of $1.4 billion.

In the filing to the SEC, Atkore states:

This is an initial public offering of shares of common stock of Atkore International Group Inc. All of the 12,000,000 shares of common stock are being offered by the selling stockholder identified in this prospectus. We will not receive any of the proceeds from the sale of the shares being sold in this offering.

Prior to this offering, there has been no public market for the common stock. We anticipate that the initial public offering price will be between $20.00 and $22.00 per share. We have been approved to list our common stock on the New York Stock Exchange, or the “NYSE,” under the symbol “ATKR”.

After the completion of this offering, we expect to be a “controlled company” within the meaning of the corporate governance standards of the NYSE.

The company also stated: We estimate that we operate in a $13 billion subset of the $78 billion U.S. electrical products market for our Electrical Raceway products and in a $3.8 billion U.S. addressable market for our MP&S products. Both of these markets are highly fragmented and present attractive opportunities for significant growth. Approximately 70% of our Adjusted net sales in fiscal 2015 were derived from U.S. construction demand, which primarily consisted of new non-residential construction and maintenance, repair and remodel (MR&R) spending on existing non-residential structures.

 

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