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ADS moving closer to IPO, expects share price of $17 to $19

By: Catherine Kavanaugh

July 14, 2014

Plastics water pipe maker Advanced Drainage Systems Inc. (ADS) announced terms today for its initial public offering, which will put 14.5 million shares expected to be between priced between $17 and $19 a each on the New York Stock Exchange.

The company plans to trade under the ticker symbol WMS — another company already is using the ticker symbol ADS — and said in a July 14 news release that proceeds from the stock sale could raise $261 million in the middle of its stock price range.

ADS plans to use the proceeds of the IPO to repay debt and for general business operations. The Hilliard, Ohio-based company sells more than $1 billion each year of mostly corrugated high density polyethylene pipe along with polypropylene pipe and storm and septic chambers.

ADS ranks second in North America among pipe, profile and tubing extruders, according to the latest ranking by Plastics News.

A registration statement was filed with the Securities Exchange Commission but has not yet become effective. The IPO is expected to be priced the week of July 21.

ADS is offering almost 5.3 million shares of common stock and selling stockholders are offering just over 9.2 million of common stock. ADS won’t receive proceeds from the sale of shares of selling stockholders.

Barclays and Deutsche Bank Securities are representing the underwriters and they are acting as joint book-running managers with Citigroup and RBC Capital Markets.

Founded in 1966, ADS manufactures its water and drainage management products at 58 factories — 48 in the United States — and distributes them from 28 centers, including 19 in the states.