TPI Composites Gears Up for Secondary Offering

Industrials

Published: May 1, 2017 12:30 pm

Last Updated: January 12, 2020 12:28 pm

TPI Composites Inc. (NASDAQ: TPIC) has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) for a secondary offering. The company intends to sell 4.5 million shares, with an overallotment option for an additional 675,000 additional shares. At the most recent closing price $, the entire offering is valued up to $101.69 million.

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), who 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.

The firm has entered into long-term supply agreements in which it dedicates certain 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 April 28, 2017, long-term supply agreements provided for estimated minimum aggregate volume commitments of $2.7 billion.

TPI will not receive any proceeds from this offering. Instead the selling stockholders will receive all the proceeds.

Shares of TPI were last seen at $19.62 on Monday, with a consensus analyst price target of $24.00 and a 52-week trading range of $11.31 to $23.30.

ALERT: Take This Retirement Quiz Now (Sponsored)

Take the quiz below to get matched with a financial advisor today.

Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.

Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future

Take the retirement quiz right here.