Banking & Finance

Sidoti Files for IPO: Wall Street Boutique Firm

Sidoti & Company Inc. has filed its S-1 form with the U.S. Securities and Exchange Commission (SEC) for an initial public offering (IPO). No terms given for the offering, but the filing is for up to $35 million. The company will list on the New York Stock Exchange under the symbol SDTI.

While this may seem like a small IPO, this is a Wall Street boutique firm that will be coming public. The underwriters for the offering are WR Hambrecht and Sidoti & Company.

Sidoti is a provider of institutional-quality equity research focused on small, publicly traded companies. The current coverage universe includes nearly 500 companies across a range of industries. These companies typically have market capitalizations of less than $3 billion and a history of profitability, and they generally maintain strong balance sheets. These companies also tend to have limited, if any, equity research coverage by other Wall Street firms.

The company’s approach affords institutional investor clients with a combination of high-quality research, a small- and micro-cap company focused nationwide sales effort, broad access to corporate management teams and extensive trading support.

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Sidoti offers principal services of equity research, sales and trading, access to corporate management, and investment banking services. The company reported revenues of $29.8 million with a net income of $0.8 million for 2012, as well as $30.3 million with a net income of $0.8 million for 2013. The six months ending in June 2014 had revenues of $14.1 million and a net income $0.3 million.

Proceeds from this offering will be put toward its asset management platform. Ultimately there will be a broad discretion in how these funds will be used.