AFG Holdings has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) for its initial public offering (IPO). The company intends to sell its 18.2 million shares in the range of $15 to $18 a piece, with an overallotment option for an additional 2.73 million shares. At the maximum price, the entire offering is valued at up to $376.74 million. The company expects to list its shares on the New York Stock Exchange under the symbol AFGL.
The underwriters for the offering are Goldman Sachs, Credit Suisse, Simmons, Barclays, Evercore ISI, UBS Investment Bank, Wells Fargo Securities, Jefferies, Raymond James and Tudor Pickering Holt.
This leading original equipment manufacturer designs and manufactures highly engineered, mission critical equipment and provides complementary consumable products, parts and aftermarket services. This company serves a diverse range of customers in the global oil and gas and general industrial end markets.
AFG’s fully-integrated business model allows it to optimize its supply chain, deliver high-quality products and control cost structure, resulting in high margins and a compelling cash flow profile. Management says that it has minimal debt and significant liquidity, which will enable it to continue pursuing strategic organic growth initiatives and acquisitions of synergistic businesses.
In the filing, the company described its finances as follows:
For the year ended December 31, 2017, we generated pro forma net income of approximately $72.3 million, Adjusted EBITDA of approximately $46.2 million (consisting of $9.4 million for the period from January 1, 2017 to June 8, 2017 and $36.8 million for the period from June 9, 2017 to December 31, 2017) and Adjusted EBITDA margin of approximately 10.5%. For the three months ended March 31, 2018, we generated net income of approximately $7.5 million, Adjusted EBITDA of approximately $26.1 million and Adjusted EBITDA margin of approximately 15.3%.
Most of the proceeds from this offering (12.6 million shares) will go to the selling shareholders. The company expects to use its portion of the net proceeds to repay its indebtedness, with any remaining proceeds used for general corporate purposes.