PSAV has registered 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 16.13 million shares within the range of $14 to $17, with an overallotment option for an additional 1.94 million shares. At the maximum price the entire offering is valued up to $315.32 million. The company intends to list on the New York Stock Exchange under the symbol PSAV.
The underwriters for the offering are Goldman Sachs, Morgan Stanley, Barclays, Credit Suisse, Macquarie Capital, Piper Jaffray and William Blair.
PSAV is a leading provider of audiovisual and event technology services in North America. Its highly trained technical staff delivers innovative solutions in support of events ranging from small meetings in single conference rooms to global multimedia conference events with thousands of attendees. As customers look to deliver more dynamic and impactful events, the event technology services that the company provides are a critical need and continue to grow in importance.
This is the event technology provider of choice at leading hotels, resorts and convention centers. The business model is based on long-term partnerships with these venues, which establish PSAV as the exclusive on-site provider of event technology services. Customers, including corporations, event organizers, trade associations and meeting planners, hire PSAV primarily through its on-site presence at venues to plan and execute their events.
The company has built a premier brand based on its comprehensive service offerings, strong track record of customer service, broad geographic footprint and on-site employee service model. The largest market is the United States.
In the filing, the company detailed its finances as follows:
Between 2011 and 2015, our revenue increased from $645.5 million to $1,487.2 million, Adjusted EBITDA increased from $53.4 million to $174.5 million and net loss improved from $19.0 million to $5.8 million. For the year ended December 31, 2015, our revenue of $1,487.2 million grew 17.7% versus the prior year. In this same period, our Adjusted EBITDA of $174.5 million represented 11.7% of revenue and 11.2% growth over the prior year.
PSAV intends to use the net proceeds from the offering to repay borrowings under its second lien credit facility and for general corporate purposes. Selling stockholders will be involved in the offering, and the company will not receive any proceeds from the sale of those shares.