BrightView Holdings Inc. (NYSE: BV) entered the market quietly in its initial public offering (IPO). The stock initially saw a slight gain compared to the announced pricing but quickly fell flat.
The company has priced its 21.3 million shares at $22 apiece, at the low end of its expected price range of $22 to $25. The underwriters have an overallotment option for an additional 3.195 million shares. At this price, the entire offering is valued at $538.89 million.
The underwriters for the offering are Goldman Sachs, JPMorgan, KKR, UBS Investment Banks, Baird, Credit Suisse, Macquarie, Jefferies, Mizuho, Morgan Stanley, RBC Capital Markets, Nomura, Stifel, William Blair, Moelis and SMBC Nikko.
This company is the largest provider of commercial landscaping services in the United States, with revenues more than 10 times those of its next largest commercial landscaping competitor. BrightView provides commercial landscaping services, ranging from landscape maintenance and enhancements to tree care and landscape development.
It operates through a differentiated and integrated national service model that systematically delivers services at the local level by combining its network of over 200 branches with a qualified service partner network. The branch delivery model underpins its position as a single-source end-to-end landscaping solution provider to its diverse customer base at the national, regional and local levels, which management believes represents a significant competitive advantage.
BrightView intends to use the net proceeds from this offering to repay its debt, as well as for working capital and general corporate purposes.
Shares of BrightView were last seen down about 2% at $21.54, with a range of $21.00 to $21.63 on the day thus far. About 4 million shares had moved as of 11 a.m. Eastern.