AVANTOR, INC. [NYSE: AVTR], a chemical and equipment company for the life-sciences industry, spiked a lot of interest from investors during its recently concluded Initial Public Offering (IPO). In fact, the chart is showing AVTR has been on an uptrend the past few days after having a rough launch on its initial public offering day on May 17, 2019. Yesterday, on May 23, AVTR pulled back a little on the charts, only to reverse and close higher by about 3.35% on the day. This was yet another bullish sign that the bulls are still in charge of this new issue. Although, the stock had closed the previous day at $16.70, it closed the session yesterday at $17.30. AVTR achieved an NLS volume of roughly 9,706,616 and hit intraday highs of $17.62 and intraday lows of $16.50. The shares 52-week high is $17.62 while the 52-week low is $14.00.
About 9,706,616 shares changed hands on Wednesday with an average volume according to Yahoo Finance of $22,234,533. The company market capitalization currently stands at around $7.377 billion.
The massive IPO, AVTR, the Radnor-based chemical and laboratory products company, closed at a colossal $3.33 billion only after all the underwriters explored their mandate and options to buy more shares in order to cover the over-allotments. AVANTOR, INC. sold a total of 238.05 million shares of its common stock at a price per share of $14. To this date Uber, still is the largest IPO closing at $8.1 billion ahead of AVANTOR, INC. IPO at $3.33 billion.
The company currently headquartered in Radnor, Pa., previously a chemical specialty division of Covidien Inc. also has offices in Allentown. AVANTOR, INC. also acquired full ownership of VWR Corp., a supplier of lab products in a deal that cost the firm roughly $6.4 billion. Currently, the company’s catalog shows that it has almost 6 million chemicals, lab supplies as well as materials that it supplies to research facilities, education centers and other life sciences firms. In addition to that, AVANTOR, INC. products are used in 180 countries across the world.
Consequently, AVANTOR, INC. announced last Thursday that it had closed the concurrent public offering for about 20.7 million shares; part of the convertible preferred stock at a cost of around $50 per share. The sale was expected to raise at least $4.24 billion following the underwriting discounts as well as the commissions in addition to the deduction of expenses.
AVANTOR, INC. then allocated $2.6 billion of the proceeds from the two IPOs to the redemption of all outstanding shares sold during the Series A preferred stock. An additional $1.6 billion was used to pay debt.
The common stock trading went live on the NYSE at a debut price of $14 per share on Friday, May 17, on the New York Stock Exchange (NYSE) using the symbol “AVTR.” While in an interview with Bloomberg the Avantor CEO & President Michael Stubblefield said in regards to the IPO and the company’s future plan:
“We will apply all the proceeds to reshape the balance sheet and position us in a strong way to invest in innovation and grow the business through acquisitions.”
“This business generates a significant amount of cash. The de-leveraging of our balance sheet has been moving at an accelerating pace and we’re nearing our target. For the right opportunity, we would be able to reach in and complete an acquisition.”
According to Yahoo Finance:
“Avantor’s net loss available to common stockholders narrowed to $356 million last year as sales ballooned to $5.9 billion after the VWR deal was completed, according to its filings. That compared to a net loss of $415 million on the same basis on $1.25 billion in sales in 2017.”
AVTR is one stock to keep on your watch list in the near term.