The Southeast US-focused roadways construction and maintenance specialist Construction Partners has announced an underwritten initial public offering (IPO).
The Alabama firm is offering 6,750,000 shares, and certain selling stockholders are offering 4,500,000 shares, adding up to a total of 11,250,000 shares of Class A common stock.
Construction Partners hopes to raise up to US$114.75 million from its shares, which are expected to price between $15 and $17 a share, while selling shareholders could also raise up to $76.5 million, although the firm will not receive any of the proceeds from selling stock holders.
The net proceeds will be used to provide growth capital, to fund acquisitions and for general corporate purposes, which may include the repayment of debt from time to time, said the firm.
For the fiscal year ended September 2017, Construction Partners generated a net income of $26 million (63 cents per share), up from $22 million (51 cents per share) in the same period a year ago.
Revenue also increased to $568.2 million from $542.3 million.