TPI Composites has registered an amended S-1 form with the U.S. Securities and Exchange Commission in regards to its initial public offering (IPO). The company expects to price its 7.25 million shares in the range of $15 to $17 per share, with an overallotment option for an additional 1.088 million shares. At the maximum price, the entire offering is valued up to $141.7 million. The company intends to list its shares on the Nasdaq Global Market under the symbol TPIC.
The underwriters for the offering are JPMorgan, Morgan Stanley, Cowen, Raymond James and Canaccord Genuity.
This company is the largest U.S.-based independent manufacturer of composite wind blades. It enables many of the industry’s leading wind turbine original equipment manufacturers (OEMs), which have historically relied on in-house production, to outsource the manufacturing of some of their wind blades through its global footprint of advanced manufacturing facilities strategically located to serve large and growing wind markets in a cost-effective manner.
Considering the importance of wind energy capture, turbine reliability and cost to power producers, the size, quality and performance of wind blades have become highly strategic to OEM customers. As a result, TPI has become a key supplier to OEM customers in the manufacture of wind blades and related precision molding and assembly systems.
TPI has entered into long-term supply agreements pursuant to which it dedicates capacity at its facilities to customers in exchange for their commitment to purchase minimum annual volumes of wind blade sets, which consist of three wind blades.
As of the end of March, the company’s long-term supply agreements provide for estimated minimum aggregate volume commitments from customers of $1.5 billion and encourage these customers to purchase additional volume up to, in the aggregate, an estimated total contract value of over $3.0 billion through the end of 2021. This collaborative dedicated supplier model provides the company with contracted volumes that generate significant revenue visibility, drive capital efficiency and allow it to produce wind blades at a lower total delivered cost, while ensuring critical dedicated capacity for customers.
The company intends to use the net proceeds from this offering for working capital and general corporate purposes.
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