Camping World Announces Potential Pricing for IPO

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Camping World Holdings has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering. The company expects to price its 11.36 million shares in the range of $21 to $23 per share, with an overallotment option for an additional 1.7 million shares. At the maximum price, the entire offering is valued up to $300.6 million. The company intends to list its stock on the New York Stock Exchange under the symbol CWH.

The underwriters for the offering are Goldman Sachs, JPMorgan, Merrill Lynch, Credit Suisse, Baird, KeyBanc Capital Markets, Wells Fargo and Stephens.

This company is the only provider of a comprehensive portfolio of services, protection plans, products and resources for recreational vehicle (RV) enthusiasts. Roughly 9 million households in the United States own an RV, and of that installed base, Camping World has approximately 3.3 million active customers. The company generates recurring revenue by providing RV owners and enthusiasts the full spectrum of services, protection plans, products and resources that it believes are essential to operate, maintain and protect their RV and to enjoy the RV lifestyle.

Camping World has 120 locations around the United States in key national RV markets. In 2015, the network generated roughly 3.5 million unique transactions, continuing to build its active customer database.

The company highlighted a few key points related to its financial performance:

  • Active Customer database had approximately 3.1 million customers on December 31, 2015, representing a 4.9% five-year compound annual growth rate (CAGR).
  • Total revenue was $3,333.3 million for the fiscal year ended December 31, 2015, representing a 21.3% five-year CAGR.
  • Net income was $178.5 million for the fiscal year ended December 31, 2015, representing a 139.8% five-year CAGR.

The company expects to use the net proceeds from this offering to repay its indebtedness, with the remainder being put toward working capital and general corporate purposes.

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