Atkore International has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). The company expects to price its 12 million shares in the range of $20 to $22, with an overallotment option for an additional 1.8 million shares. At the maximum price the entire offering is valued up to $303.6 million. The company intends to list on the New York Stock Exchange under the symbol ATKR.
The underwriters for the offering are Credit Suisse, Deutsche Bank, JPMorgan, UBS Investment Bank, Citigroup, RBC Capital Markets and Wells Fargo.
This is a leading manufacturer of Electrical Raceway products, primarily for the nonresidential construction and renovation markets and mechanical products and solutions (MP&S) for the construction and industrial markets. Electrical Raceway products form the critical infrastructure that enables the deployment, isolation and protection of a structure’s electrical circuitry from the original power source to the final outlet. MP&S frame, support and secure component parts in a broad range of structures, equipment and systems in electrical, industrial and construction applications.
Atkore believes it holds one of the top positions in the United States by net sales in most of its products.
The company further detailed in the filing:
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. As illustrated in the following charts, 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.
From fiscal 2011 to the 12 months ended in March 2016, Atkore grew its adjusted net sales and net sales at a compound annual growth rate of 3.9% to $1.49 billion and 2.1% to $1.59 billion, respectively.
The company will not receive any proceeds from the offering. Instead the selling stockholders will receive the net proceeds.
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