Shares of Orion Energy Systems Inc., which makes energy-efficient lighting systems, are expected to begin trading Wednesday after the company’s initial public offering priced at $13 per share, within the anticipated price range.
According to Securities and Exchange Commission filings, Orion had expected the IPO of 7.7 million shares to price between $12 and $14 each.
Based on the anticipated price range, Orion has a market capitalization of $330.2 million.
The Plymouth, Wis.-based company offered about 5.7 million shares, and a group of stockholders sold the remaining 2 million shares.
Assuming an offering price of $13 per share, the company raised net proceeds of about $64.9 million from the IPO, after fees and expenses.
The offering is expected to close on Dec. 24.
Orion has installed its lighting systems in more than 2,100 locations, including sites for 78 Fortune 500 companies, such as Coca-Cola Enterprises Inc., General Electric Co., Kraft Foods Inc., Newell Rubbermaid Inc., OfficeMax Inc., Sysco Corp. and Toyota Motor Corp.
The company estimates that its high-intensity fluorescent lighting system cuts power costs for lighting by about 50%, while also increasing quantity of light by about 50%, compared with high-intensity discharge fixtures.
"We believe that the implementation of our complete energy management system enables our customers to further reduce electricity costs, while permanently reducing base and peak load electricity demand," Orion wrote in its prospectus.
President and Chief Executive Neal R. Verfuerth invented many of the company’s products. Previously, he was a director of sales and marketing and product development for Lights of America Inc., which makes compact fluorescent lighting technology. He has also served as president of Energy 2000/Virtus Corp., a solar-heating and energy-efficient-lighting business.
For the six months ended Sept. 30, Orion swung to a profit of to $1.1 million, after paying preferred dividends, compared with a loss of $41,000 in the prior-year period. During the same quarter, revenue rose to $35.1 million, from $20.3 million.
Orion said it is taking steps to correct significant deficiencies in its internal control over financial reporting.
Orion says it plans to use proceeds from the offering for working capital and general corporate purposes, including to fund potential future acquisitions.
Thomas Weisel Partners served as the IPO’s sole book-running manager. Canaccord Adams and Pacific Growth Equities acted as co-managers.
The underwriters have an option to buy up to about 1.2 million more shares from the company to cover any overallotments.
Orion shares will trade on the Nasdaq Global Market under the symbol "OESX."
(Visited 1,459 times, 1 visits today)
Loading...