Key Takeaways:
- ITG launched its IPO roadshow offering 19.5 million shares at $19 to $22 each
- The deal is valued at up to $429 million at the top of the range
- Proceeds will repay debt and support growth in digital infrastructure services
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ITG launches $371M to $429M IPO roadshow for Nasdaq listing
ITG Inc., a provider of end-to-end services to the communications and digital infrastructure industries, launched its IPO roadshow Monday, offering 19.5 million shares at $19 to $22 apiece for a deal valued at as much as $429 million.
"The roadshow launch marks a significant step in ITG's transition to a public company, allowing us to reduce debt and invest in growth," said a company representative, who spoke on condition of anonymity as the quiet period is in effect.
The Fort Lauderdale-based company plans to list on the Nasdaq Global Select Market under the ticker "ITG." At the midpoint of the price range, the offering would raise roughly $400 million, with net proceeds earmarked to repay outstanding principal under its revolving credit facility and term loan facility. Any remaining funds will support general corporate purposes and business growth.
The IPO comes as demand for digital infrastructure services surges, with ITG operating across 49 states in broadband, wireless, data center, utility and civil infrastructure. The company's workforce supports the planning, design, construction, operation, maintenance and expansion of the digital backbone powering the U.S. economy. Oaktree Capital Management, an existing equity owner, stands to benefit from the underwriters' overallotment option, which includes up to 2.2 million additional shares from the company and 758,194 from a selling stockholder, with proceeds used to redeem equity interests held by Oaktree-controlled entities.
Deal Structure and Underwriters
Morgan Stanley, Citigroup, UBS Investment Bank and Stifel are acting as joint bookrunners and representatives of the underwriters. BofA Securities, Baird, Santander, KeyBanc Capital Markets and Truist Securities are also joint bookrunners, with Houlihan Lokey, BTIG, Capital One Securities and Regions Securities LLC serving as co-managers. The underwriters have a 30-day option to purchase additional shares at the IPO price, less underwriting discounts and commissions.
Use of Proceeds and Strategic Rationale
ITG intends to deploy the bulk of the IPO proceeds to reduce leverage on its balance sheet, repaying outstanding borrowings under its revolving credit facility and term loan. The deleveraging positions the company to pursue growth opportunities in the communications and digital infrastructure sectors, where demand is being driven by the expansion of broadband networks, 5G wireless deployment and data center construction. The company will not receive any proceeds from shares sold by the selling stockholder.
The registration statement has been filed with the SEC but has not yet become effective, meaning the securities cannot be sold until the registration is approved. The offering is subject to market conditions, and there can be no assurance as to whether or when it may be completed.
This article is for informational purposes only and does not constitute investment advice.
