Going into the IPO for EnergySolutions (NYSE: ES), there appeared to be quite a bit of demand. The shares priced at $23, which was above its $19-$21 range. Although in today's trading, the stock has barely moved.
EnergySolutions is a technology provider for the nuclear services industry. That is, the company helps with things like in-plant support services, operation of nuclear reactors, logistics, and decontamination and decommissioning (D&D).
In fact, the D&D division has perhaps the most promise. Keep in mind that the U.S. government is in the process of shutting down a variety of old power plants. The cost could reach as much as $300 billion. What's more, it looks like the federal government will shell out $50 billion on the initiatives over the next couple years.
This is extremely complex stuff -- and requires state-of-the-art facilities and technologies. For example, EnergySolutions has a portfolio of more than 175 patents. What's more, the employee base includes about 1,150 scientists and engineers, as well as 400 radiation and safety professionals.
Last year, EnergySolutions generated $1.8 billion in revenues and pro format net income of $62.6 million. EBITDA was $201.7 million.
The lead underwriters on the IPO included Credit Suisse (NYSE: CS), JPMorgan (NYSE: JPM), and Morgan Stanley (NYSE: MS).
You can find the prospectus at the SEC Website. Also, if you want to find more information on recent IPO activity, visit DealProfiles.com.
Tom Taulli is the author of various books, including The Complete M&A Handbook
Closing Bell: Dubai sends jitters throughout the market (S, BBY)
Heinz looking good after the second quarter?
Why isn't Bank of America updating its shareholders on CEO situation?
