OTG EXP has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) in regards to its initial public offering (IPO). The 32.5 million shares in offering are expected to price in the range of $16 to $18 per share, with an overallotment option for an additional 4.875 million shares. The entire offering at the maximum price is valued up to $672.75 million. The company intends to list on the Nasdaq Global Select Market under the symbol OTG.
The underwriters for the offering are Morgan Stanley, Credit Suisse, Barclays, BMO Capital Markets, Keybanc Capital Markets, Fifth Third Securities, Regions Securities and Maxim Group.
This high-growth company is transforming the airport travel experience for millions of travelers every year. OTG combines world-class hospitality and award-winning cuisine with innovative design and state-of-the-art technology to provide what it calls the “OTG Experience.” The company’s proprietary restaurant concepts are complemented by its signature tablet platform, which was the first and remains the only one of its kind in the industry.
OTG started in 1996 with a single restaurant location in the Philadelphia International Airport and the goal of delivering a great restaurant experience that just happened to be in an airport. Today, it is one of the leading airport food and beverage (F&B) operators in North America, with more than 220 locations in 23 terminals across 10 airports. The current target market is North America’s top 30 airports by enplanement, which recorded 576 million enplanements and $5.2 billion total F&B and news and gifts concession sales in 2014.
In the filing, OTG said:
During fiscal 2012 to 2014, we grew from 111 F&B locations in eight airports to over 220 locations across 10 airports. During the same time period, our net sales grew from $146 million to $274 million, representing a 23% compound annual growth rate (CAGR).
The company intends to use the net proceeds from the offering to repay indebtedness, as well as for working capital and general corporate purposes.
Cash Back Credit Cards Have Never Been This Good
Credit card companies are at war, handing out free rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
