Management says it will use the net proceeds from the IPO as follows: We intend to use $139.3 million of the net proceeds from this offering in connection with the redemption of all outstanding shares of our Series A-1 preferred stock and the remainder for general corporate purposes, including future investments in innovation and acquisitions in our highly fragmented industry. Montrose is seeking public market capital for its ongoing operations as well as to likely fund additional acquisitions, as the firm has been very acquisitive due to industry fragmentation. Montrose Environmental Group, which provides environmental assessment, management and remediation services, plans to raise up to $170 million in … This is a top-tier performance for all major underwriters during the period. (I have no position in any stocks mentioned as of the article date, no plans to initiate any positions within the next 48 hours, and no business relationship with any company whose stock is mentioned in this article. Montrose Environmental Group has gone public in an offering which went well with shares up 50% on their opening day despite a soft pricing process. IPO stocks can be very volatile in the days immediately after an IPO. Montrose intends to raise $160 million in gross proceeds from an IPO of ten million shares of its common stock at a midpoint price of $16.00 per share. This article is exclusive for subscribers. Montrose Environmental Group has filed to raise $160 million in an IPO of its common stock. Major competitive or other industry participants include: Management says its primary competitors are divisions of large companies and that few of its competitors provide the full range of solutions that it offers. Watertown, Massachusetts-based SQZ was founded to develop its Cell Squeeze technology that squeezes cells 'through a microfluidic chip, temporarily opening the cell membrane and enabling biologic material of interest, or cargo, to diffuse into the cell.'. Listed bookrunners of the IPO are BofA Securities, William Blair, BNP Paribas, Capital One Securities, Stifel, and Needham & Company. As to valuation, according to an NYU Stern School basket of publicly held Environmental & Waste firms, their average EV / Sales multiple in January 2020 was 3.08x. Jul 15, 2020 Montrose Environmental Group (MEG) intends to raise $160 million in an IPO of its common stock, according to an S-1/A registration statement. Los Angeles, California-based MediaAlpha was founded to create an online programmatic ad purchasing and management system for insurance carriers to obtain prospective leads for new customers. The company is basically an acquisition play, Finding value that gets unlocked in M&A, IPOs and other corporate events. This article is exclusive for subscribers. Montrose Environmental Group is a product of environmental-related acquisitions. Montrose Environmental Group (MEG-OLD) has filed to raise $160 million in an IPO of its common stock, according to an S-1/A registration statement. MEG’s proposed EV / Revenue multiple of 2.55x indicates to me that the IPO appears reasonably valued, especially given the firm’s likely higher revenue growth rate of nearly 20%. 14 IPOs are scheduled for the week ending October 30. The 180-day shareholder sale lockup period will expire for one operating firm. MEG has a reasonable IPO valuation, potential for continued growth through acquisition and new organic opportunities as well as resilience to viral pandemic conditions. Montrose’s recent financial results can be summarized as follows: Below are relevant financial results derived from the firm’s registration statement: As of March 30, 2020, Montrose had $1.5 million in cash and $257.5 million in total liabilities. The firm provides a range of environmental, Get the IPO Edge with unique research on next-generation high growth stocks. BofA Securities is the lead left underwriter and IPOs led by the firm over the last 12-month period have generated an average return of 46.0% since their IPO. Below is a brief overview video of a Montrose PT Mobile Lab: The firm targets customers in the following markets: Montrose has received at least $168 million from investors including Oaktree Capital Management, CTEH Holdings, and Yukon Environmental. 11 companies will see their 25-day underwriter research quiet periods end. The firm's addressable market is believed to be approximately $395 billion and is expected to grow at a rate of 3.4% per year from 2018 to 2024. The SCOOP ratings should not be taken as investment advice. Boston, Massachusetts-based Atea was founded to develop treatments for virus-borne diseases such as Hepatitis C, Dengue and more recently Covid-19. The initial public offering price is expected to be between $15 and $17 per share. Free cash flow during the twelve months ended March 30, 2020, was $2.0 million. A high growth rate is expected to occur in the Remediation and Industrial Services and Consulting & Engineering Services sub markets, and a lower growth rate in the Wastewater Treatment Services and Analytical Services markets, as shown in the chart below: Also, with the advent of the recent Covid19 pandemic, there will be an increased focus on air quality and management expects 'the WHO's guidelines coupled with increasing pollution to catalyze local air quality regulations and therefore, demand for environmental services, particularly air quality services.'. Selling, G&A expenses have increased as a percentage of revenues; its Selling, G&A efficiency rate has dropped as revenues have increased. The market opportunity for environmental services is large and expected to grow at a low-to-moderate rate of growth in the years ahead, although the aforementioned increasing focus on air quality as a result of the Covid19 pandemic may produce new market growth opportunities for nimble firms such as Montrose. New York, New York-based GBS was founded to develop a saliva glucose biosensor and more recently switched its efforts to repurposing its technology for a point of care diagnostic testing system for the Covid-19 virus. Montrose Environmental Group (MEG) intends to raise $160 million in an IPO of its common stock, according to an S-1/A registration statement. Oaktree-backed environmental services firm Montrose Environmental prices IPO at $15 low end 07/23/20 US IPO Week Ahead: A software provider and the largest SPAC ever … Management says its 'long-standing relationships with a number of Fortune 1000 companies and government entities, and many of its services were deemed 'essential' during the recent Covid19 shelter in place guidelines.Notably, the firm has acquired over 50 businesses in the last eight years, as management views the industry as still highly fragmented and it intends to continue 'selectively acquiring companies' in the industry. Information provided is for educational purposes only, may be in error, incomplete or out of date, and does not constitute financial, legal, or investment advice.). Today's IPO for Montrose Environmental Group (NYSE: MEG) opened for trading at $16.50 after pricing 10,000,000 shares of its common stock at … Montrose Environmental Group (MEG-OLD) has gone public in an offering which went well with shares up 50% on their opening day despite a soft pricing process. However, Montrose says it is engaging with over 70 clients on their Covid19 response activities, so it appears the firm has the potential for resiliency through the pandemic and even the potential for new business opportunities as a result of the pandemic as customers increase their focus on air quality. Management’s presentation of the company roadshow is available here. Selling, G&A expenses as a percentage of total revenue have been rising as revenues have increased. The IPO appears reasonably valued so is worth a closer look. The company obtains customers through a direct sales force team and the firm has more than 4,500 clients producing revenue growth of an average of 17% per year since 2016, inclusive of its recent acquisition of consulting firm CTEH. Increasing gross profit, but variable gross margin, Growing operating losses and negative margin, Uneven cash flow from or use in operations. The firm provides a range of environmental remediation and management services to industry.

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