Zekelman Industries has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). The company intends to price its 41.75 million shares in the range of $17 to $19 per share, with an overallotment option for an additional 6.26 million shares. At the maximum price, the entire offering is valued up to $912.24 million. The company intends to list its shares the New York Stock Exchange under the symbol ZEK.
The underwriters for the offering are Goldman Sachs, Merill Lynch, BMO Capital Markets, Credit Suisse, GMP Securities, KeyBanc Capital Markets, William Blair, Stifel, BTIG and PNC Capital Markets.
This leading North American manufacturer of industrial steel pipe and tube products has over 100 years of operating experience. Management believes it is the largest producer by volume of hollow structural sections and electrical conduit products in the United States and Canada on a combined basis, and the largest producer by volume of standard pipe products in the United States.
The company is headquartered in Chicago, Illinois, and has 13 pipe and tube production facilities in seven states and one Canadian province, with total production of roughly 2.1 million tons from its continuing operations for the past 12 months. It offers a broad array of products marketed under a family of respected brands, such as Atlas, Wheatland, Sharon Tube, Western Tube & Conduit, Picoma and Z Modular. In the past 52 weeks, the firm sold over 10,000 distinct pipe and tube products to over 2,000 customers.
Zekelman generates revenue primarily in the United States, which accounted for about 86% of its net sales in the past 52 weeks, with the remainder generated primarily in Canada. For the past 12 months, it generated $2.6 billion of net sales, $249.2 million of income from continuing operations and $492.5 million of adjusted EBITDA.
The company intends to use the net proceeds from this offering to repay its indebtedness, as well as for working capital and general corporate purposes.