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The reaction was somewhat mixed when Advanced Disposal Services Inc. (NYSE: ADSW) entered the market on Thursday. The company priced its 19.25 million shares at $18 per share, but effectively entered the market at $20.50. What makes this situation interesting is that the expected price range going into the offering was $18 to $21 per share, and shares priced at the lower end despite entering and having a somewhat favorable reaction.

At this price level and with consideration to the overallotment option for an additional 2.89 shares, the entire offering is valued up to $398.52 million.

The underwriters for the offering are Deutsche Bank, Credit Suisse, Barclays, UBS Investment Bank, Merrill Lynch, Macquarie Capital, Morgan Stanley, Stifel, SMBC Nikko and First Analysis Securities.

This leading integrated provider of non-hazardous solid waste collection, transfer, recycling and disposal services operates primarily in secondary markets or under exclusive arrangements. ADS has a presence in 18 states across the Midwest, South and eastern regions of the United States, serving approximately 2.8 million residential and 221,000 commercial and industrial customers through an extensive network of 92 collection operations, 72 transfer stations, 21 owned or operated recycling facilities and 39 owned or operated landfills.

The company seeks to drive financial performance in markets in which it owns or operates a landfill or in certain disposal-neutral markets, where the landfill is owned by a municipal customer. In markets in which it owns or operates a landfill, the company aims to create and maintain vertically integrated operations through which it manages a majority of customers’ waste from the point of collection through the point of disposal, a process referred to as internalization.

By internalizing a majority of the waste in these markets, ADS is able to deliver high-quality customer service while also ensuring a stable revenue stream and maximizing profitability and cash flow from operations. In disposal-neutral markets, it focuses selectively on opportunities where the company can negotiate exclusive arrangements with municipal customers, facilitating highly efficient and profitable collection operations with lower capital requirements.

The company detailed its finances as follows:

For the twelve months ended June 30, 2016, we generated revenues of $1.4 billion, net loss of $28.3 million, adjusted EBITDA of $401.4 million and cash flow from operations of $219.6 million.

ADS intends to use the net proceeds from this offering to repay its indebtedness, as well as for working capital and general corporate purposes.

Its shares were last seen at $20.18, with a range of $19.51 to $20.50 on the day thus far. As of 10:30 a.m. Eastern over 6 million shares have moved on the day.