Smart Global Holdings 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 5.3 million shares in the range of $13 to $15 per share, with an overallotment option for an additional 795,000 shares. At the maximum price, the entire offering is valued up to $91.43 million. The company intends to list its stock on the Nasdaq under the symbol SGH.
The underwriters for the offering are Barclays, Deutsche Bank, Jefferies, Stifel, Needham and Roth Capital Partners.
This is a global leader in specialty memory solutions, serving the electronics industry for over 25 years. As part of its global business, Smart has established a leading market position, as measured by market share, in Brazil as the largest in-country manufacturer of memory for desktops, notebooks and servers, as well as mobile memory for smartphones. The firm also has a leading market position worldwide, as measured by revenue, in specialty memory where it works closely with original equipment manufacturer (OEM) customers to develop memory solutions.
Smart also provides customized, integrated supply chain services to certain OEM customers to assist them in the management and execution of their procurement processes. Its global, diversified customer base includes over 250 end customers, such as Cisco, Samsung, Hewlett Packard Enterprise, Dell and LG.
Since 2002, when the firm commenced operations in Brazil, it has invested over $170 million to build and improve its advanced manufacturing facilities and has assembled and trained a staff of over 480 employees, who comprise many of the leading semiconductor technology professionals in the country.
The business in Brazil has historically focused on dynamic random-access memory (DRAM) components and modules for desktops, notebooks and servers, where local content and tax regulations provide substantial financial incentives to its customers to procure locally manufactured memory products, particularly when they are made with locally processed components.
According to IDC Research, worldwide demand for DRAM and NAND flash memory units will increase by 117% and 358%, respectively, when comparing 2021 to 2016. Smart also believes that 8 Gb die will be the next leading DRAM density, which will drive DRAM bit growth. According to IDC, 8Gb die will account for 40% of worldwide DRAM bit shipments in 2017, up from 7% in 2015. IDC forecasts that 8Gb die will grow rapidly in 2018, with 8Gb die accounting for 49% of worldwide DRAM bit shipments by 2018.
The company intends to use the net proceeds from the offering to repay its indebtedness, with the remainder put toward working capital and general corporate purposes.