RedPrairie and Generac expected to offer shares to public markets during first quarter
Two well-known companies based in southeastern Wisconsin are expected to file initial public offerings in early 2010.
Robert Damron, co-portfolio manager of growth strategy with 1492 Capital Management LLC, a Milwaukee-based financial advisory firm, said the rebound in the financial markets that occurred last year has made public offerings viable for privately held firms.
“Companies that have had fairly strong financial performance in 2009 and have a solid outlook in 2010 should fare well in the IPO process,” he said. “With the relatively high market valuations, it is a pretty good time for IPOs and secondary offerings in the public markets.”
Waukesha-based RedPrairie, a software and technology provider to manufacturers, retailers and distributors, is expected to offer its IPO during the first quarter of 2010. In filings with the federal Securities Exchange Commission, RedPrairie states that it could raise up to $172.5 million with the offering. As many as 12.9 million shares of stock could be made available during its IPO, which it expects could sell at $14.63 per share.
The company also anticipates issuing more than 250,000 shares to its directors and executives, its filing says.
RedPrairie had about $194 million in revenues for the first nine months of 2009, according to its filings with the SEC, compared to $221 million in the same period of 2008. It had about $95 million in profit by the end of September of 2009, compared to $106.5 million during the first three quarters of 2008.
To view RedPrairie’s filings with the SEC, click http://edgar.sec.gov/Archives/edgar/data/1476750/000119312509242750/ds1.htm
Waukesha-based Generac Power Systems Inc. is also expected to offer shares of its company to the public markets during the first quarter.
According to documents filed with the SEC, Generac expects to raise up to $300 million in selling shares to the public markets. The company will be traded under the symbol GNRC on the New York Stock Exchange. Generac has not disclosed the number of shares it expects to sell or their price in its filings with the SEC.
To see Generac’s filings with the SEC, click http://edgar.sec.gov/Archives/edgar/data/1474735/000104746910000097/a2195620zs-1a.htm
Southeastern Wisconsin lost the headquarter of one of publicly traded company last year, when Metavante was acquired by Fidelity National Information Services Inc., which has merged Metavante into its operations.
Under terms of the merger agreement, FIS acquired all of the outstanding shares of Metavante common stock, with each Metavante shareholder receiving 1.35 shares of FIS common stock for each share of Metavante common stock held.
"The combined scale, complementary product capabilities and market breadth of these two great companies will drive significant competitive advantages in the increasingly dynamic marketplace," said William Foley II, chairman of Jacksonville, Fla.-based FIS. "This transaction will further strengthen FIS’ competitive position as a leading global provider of technology solutions and enable us to generate increased value for shareholders and customers."