ADS launches public trading on NYSE

By Catherine Kavanaugh
Staff Reporter

Published: July 25, 2014 10:41 am ET
Updated: July 25, 2014 3:06 pm ET

Image By: Advanced Drainage Systems Advanced Drainage Systems pipe going into place at Citi Field.

Related to this story

Topics United States, Corrugated pipe, Pipe/Profile/Tubing

Advanced Drainage Systems, the world’s largest producer of thermoplastic corrugated pipe, made its debut on the New York Stock Exchange today with 14.5 million shares offered at $16 to raise $232 million.

Listed under the ticker symbol WMS, the initial public offering (IPO) for the company that makes high-performance pipes for water management solutions was priced below the expected $17-$19 range.

ADS now commands a $1.6 billion enterprise value, according to IPO watchers at Renaissance Capital.

Officials from the company based in Hilliard, Ohio, rang the bell to signal the start of trading for July 25, which opened lower because of weak earnings reports from Amazon and political unrest in Gaza and Ukraine.

In a week with 14 IPOs, ADS made several pick lists for its history of profitability, presence in numerous geographic areas, and stable management.

ADS has 48 manufacturing plants and 19 distribution centers to serve customers needing plastic pipes and related products like septic and storm chambers for construction and infrastructure projects. Products ship to a radius of about 200 miles and this national availability is considered an edge in serving major customers.

ADS pipes are made of high density polyethylene and polypropylene. The market for HDPE pipe is poised to grow as it is approved for more uses.

So far, 2014 is on track to be one of the best years for new stock issues. ADS was the second largest IPO of the week. Proceeds will be used to repay outstanding debt of at least $82.9 million.


Comments

ADS launches public trading on NYSE

By Catherine Kavanaugh
Staff Reporter

Published: July 25, 2014 10:41 am ET
Updated: July 25, 2014 3:06 pm ET

Post Your Comments


Back to story


More stories

Image

Five-axis flexibility paying off for Sepro and its customers

October 29, 2014 1:47 pm ET

French robot maker Sepro Robotique expects to generate 78 million euros ($99 million) in 2014 sales — 17 percent more than 2013 — as...    More

Image

Schütz investing $20 million for bulk container production in Missouri

October 29, 2014 11:18 am ET

German packaging company Schütz GmbH & Co. KGaA is expanding its presence in the United States through a $20 million project in Missouri slated to...    More

Image

DSM picks Augusta, Ga., for nylon plant

October 29, 2014 11:49 am ET

Materials firm Royal DSM NV has chosen Augusta, Ga., as the site of its new North American nylon resin plant.    More

Image

Detroit Manufacturing Systems to hire 200 for F-150 production

October 29, 2014 10:40 am ET

Interior trim supplier Detroit Manufacturing Systems LLC plans to hire 200 assembly workers by January to support production growth of Ford Motor Co....    More

Image

Unplanned disruption in Texas hits Huntsman's quarterly earnings

October 29, 2014 9:30 am ET

Huntsman Corp. saw its earnings drop in the third quarter of 2014, due in part to an unplanned disruption at its Port Neches, Texas, plant.    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events