ADT has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) for its initial public offering (IPO). The company expects to price its 111.11 million shares in the range of $17 to $19 per share, with an overallotment option for an additional 16.67 million shares. At the maximum price, the entire offering is valued up to $2.43 billion. The company expects to list its shares on the New York Stock Exchange under the symbol ADT.
The underwriters for the offering are Morgan Stanley, Goldman Sachs, Barclays, Deutsche Bank, RBC Capital Markets, Citigroup, Merrill Lynch, Credit Suisse, Imperial Capital, Academy Securities, Allen, Apollo Global Securities, Citizens Capital Markets, LionTree, SunTrust Robinson Humphrey and the Williams Capital Group.
This is the leading provider of monitored security, interactive home and business automation and related monitoring services in the United States and Canada. Its mission is to help customers protect and connect to what matters most — their families, homes and businesses.
A 2017 survey found that the ADT brand had approximately 95% brand awareness, and nearly half of ADT customers surveyed did not consider any other security alarm provider during their purchase process.
ADT estimates that it is approximately five times larger than the next largest residential competitor, with an approximate 30% market share of the residential monitored security industry in the United States and Canada. Excluding contracts monitored but not owned, the firm currently serves roughly 7.2 million residential and business customers, making it the largest company of its kind in the United States and Canada.
The firm is one of the largest full-service companies with a national footprint providing both residential and commercial monitored security. ADT has 18,000 employees that visit roughly 10,000 homes and businesses daily. It handles about 15 million alarms annually.
ADT intends to use the net proceeds from this offering to repay its indebtedness, as well as for working capital and general corporate purposes.