Shimmick Construction Sets Pricing for IPO

Industrials

Published: December 31, 2015 11:05 am

Last Updated: January 13, 2020 3:33 pm

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Shimmick Construction has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) for its initial public offering (IPO). The company expects to price its 6.25 million shares in the range of $11 to $13, with an overallotment option for an additional 937,500 shares. At the maximum price the entire offering is valued up to $93.4 million. The company intends to list on the Nasdaq Global Market under the symbol SCCI.

The underwriters for the offering are FBR, BB&T Capital Markets and D.A. Davidson.

This leading heavy civil construction company offers general construction, construction management and design-build services to federal, state and local public agencies and private customers in California and the western United States.

Shimmick possesses the in-house capabilities necessary to self-perform nearly all aspects of heavy civil construction — structural, foundations, utilities, mechanical and electrical — which enables it to compete for large, technical projects and differentiates the company from many of its competitors.

Since the present executive team assumed leadership in 2001, Shimmick and its joint venture partners have been awarded over $5 billion worth of complex critical public infrastructure projects, including bridges, water/wastewater treatment facilities, dams, transit and rail, highways and roadways, ports, and airports.
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Starting in 2001, the company has achieved a revenue compound annual growth rate of roughly 18.0%.

In the filing the company said:

As of November 15, 2015, we and our joint venture partners had a project pipeline of approximately $12 billion, of which we and our joint venture partners were actively engaged in bidding approximately $4 billion as outlined in the table below. The portion of such amounts allocable to us was approximately $8.3 billion and $2.2 billion, respectively. We believe that we are ideally positioned to benefit from increased investment now and in the future.

Shimmick intends to use the net proceeds from this offering for working capital and general corporate purposes.

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