Dec 9 (Reuters) – Construction services provider Cardinal Infrastructure Group said on Tuesday it has raised about $241.5 million in its initial public offering in the United States.
The Raleigh, North Carolina-based company sold 11.5 million shares at $21 apiece, compared with the marketed range of $20 to $22 per share. The IPO valued Cardinal at about $768.74 million.
Cardinal kicks off a three-deal week as the U.S. IPO market enters the final stretch of the year, with several companies poised to go public before the holiday lull kicks in.
Medical imaging provider Lumexa Imaging and robo-adviser Wealthfront are poised to debut in New York later this week.
Markets have also bounced back after last month’s jitters amid firming bets of an interest rate cut by the Federal Reserve, encouraging some companies to tap the final IPO window of 2025.
“Investor risk appetite is re-emerging after last month’s AI-related concerns caused a sell-off in the tech sector, including among new listings,” said Matt Kennedy, senior strategist at Renaissance Capital, a provider of IPO-focused research and ETFs.
Founded in 2013 by CEO Jeremy Spivey, Cardinal provides wet utility installations such as water, sewer and stormwater systems for buildings apart from other related site services.
Mainly owned by its executives, Cardinal has expanded significantly through acquisitions, which the company believes accounts for nearly 27% of its growth since its inception.
The company reported a $26.2 million profit on $310.2 million revenue in the nine months ended September 30, compared with a $21.9 million profit on $230.3 million revenue in the same period a year earlier.
Stifel and William Blair were the book-running managers for the offering. D.A. Davidson was the lead manager.
Cardinal will begin trading on the Nasdaq under the symbol “CDNL” on Wednesday.
(Reporting by Arasu Kannagi Basil and Anusha Shah in Bengaluru; Editing by Alan Barona)
Comments