Boston Omaha Corp. (NASDAQ: BOMN) entered the market quietly on Friday in its initial public offering (IPO). The firm priced its 6.54 million shares at $13 per share, with an overallotment option for an additional 980,769 shares. At this price, the entire offering is valued at $97.75 million. Shares opened more or less in line with the price.
The sole underwriter for this offering is Cowen.
This company commenced its current business operations in June 2015 and currently operates three separate lines of business: outdoor billboards, surety insurance and related brokerage activities, and investments in real estate management and related activities.
Since June 2015, Boston Omaha has acquired numerous billboard structures, many with multiple faces, including both static and digital displays, in Alabama, Florida, Georgia and Wisconsin. As of June 13, 2017, it owned 532 billboard structures containing a total of 907 faces, of which 30 are digital displays.
The company continues to evaluate possible acquisitions of additional billboard displays and expects to use a significant portion of its currently available cash and cash proceeds from this offering to expand its presence in current markets and new regions of the United States.
The company intends to use the net proceeds from this offering to fund future billboard acquisitions, expand its insurance activities, expand its investments in real estate and acquire other businesses. The remainder of proceeds will be put toward working capital and general corporate purposes.
Shares of Boston Omaha were last seen trading at $13.10. The stock has a range of $12.96 to $14.99 (although the $14.99 appears to be a misprint) on the day thus far, also only 370,000 shares have moved.