NEW YORK (Reuters) – Private equity-backed generator company Generac Holdings Inc raised the maximum size of its initial public offering 42.6 percent to $427.7 million on Monday.
The Wisconsin-based company had filed to raise up to $300 million in October. It said that it still plans to use proceeds from the IPO to pay down debt and for general corporate purposes.
The company, which makes generators fueled by natural gas, liquid propane, gasoline, and diesel, was bought by a group led by private equity firm CCMP Capital LLC in 2006. It sells generators to consumers as well as industrial clients such as telecommunications firms.
Generac had sales of $434.3 million in the nine months ended Sept. 30, up 7.5 percent from the same period a year earlier. It reported a net profit of $31.1 million compared with a $40.2 million loss in the year-ago period.
The company narrowed its interest expense loss 34.1 percent to $53.7 million and nearly tripled its gain on extinguishment of debt.
But Generac said in the prospectus with the U.S. Securities and Exchange Commission that its business is sensitive to “unpredictable major power-outage events” such as storms.
The company plans to list on the New York Stock Exchange under the symbol “GNRC.”
Underwriters are being led by JP Morgan and Goldman Sachs & Co. (Reporting by Clare Baldwin, editing by Leslie Gevirtz)