MPM Announces Potential Pricing for IPO

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MPM Holdings has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering IPO). The company expects to price its 14.58 million shares in the range of $23 to $25 per share, with an overallotment option for an additional 2.19 million shares. At the maximum price, the entire offering is valued up to $419.27 million. The company intends to list its shares on the New York Stock Exchange under the symbol MPMH.

The underwriters for the offering are JPMorgan, Goldman Sachs, Credit Suisse, Deutsche Bank, UBS Investment Bank, Wells Fargo and BMO Capital Markets.

This is one of the world’s largest producers of specialty silicones and silanes and a global leader in fused quartz and specialty ceramics products. The company is based in Waterford, New York, and has a long track record of creating innovative products and solutions designed to meet the complex requirements of our more than 4,000 customers in over 100 countries.

The company’s silanes and specialty silicones are used as additives and formulated products that provide or enhance certain attributes of the end product. Its products have a range of attractive properties, including heat and chemical resistance, lubrication, adhesion and viscosity. These properties position MPM’s specialty silicones and silanes products as critical materials in many automotive, industrial, construction, health care, personal care, electronic, consumer and agricultural applications. Its advanced materials are ubiquitous in daily life and are instrumental inputs in a wide range of products, including applications in consumer and personal care (e.g., cosmetics, electronic displays and foam mattresses), automotive (e.g., headlights, paneling and tires) and healthcare (e.g., medical tubing).

In the filing, the company described its finances as:

Net revenues, net loss and Segment EBITDA (a non-GAAP financial measure) for the nine months ended September 30, 2017 were $1,732 million, $19 million, and $210 million, respectively, and for the year ended December 31, 2016 were $2,233 million, $163 million, and $238 million, respectively. For the last twelve months ended September 30, 2017, Momentive generated $2,276 million and $275 million of net revenue and Segment EBITDA, respectively, representing a Segment EBITDA margin of 12%.

MPM intends to use the net proceeds from this offering to repay its debt, with the remainder going toward working capital and general corporate purposes.