For the second time in its 33-year life, rubber-tracked vehicle maker ASV of Grand Rapids is a public company.
An initial public offering earlier this month saw ASV raise $26.6 million as it was spun off from former parent companies Terex Corp. and Manitex International.
After an initial offering of $7 per share, the company's stock hasn't yet traded above $8, but reached $7.71 at the end of last week.
ASV, which makes compact track loaders and skid-steer loaders, was public from 1994 until it was acquired by Terex in 2008. Manitex bought 51 percent of the company in 2014.
ADVERTISEMENT
The public offering was estimated to result in net proceeds of $10.7 million, according to Securities and Exchange Commission filings.
"The principal purposes of this offering are to obtain additional capital to support our operations, to establish a public market for our common stock, to facilitate our future access to the public capital markets and to create liquidity for the selling stockholders," according to SEC documents. ASV also wrote that 40 percent of the proceeds had to be used to pay down its $45.6 million in debt.
Manitex reported that ASV had $28 million in net revenue in the first three months of the year; the company had $103 million in revenue for all of 2016.
SEC filings show Bobcat, Caterpillar, Kubota and John Deere make up nearly three quarters of sales in ASV's market. The company wrote: "We compete with other manufacturers based on many factors, particularly price, performance and product reliability."
ASV was founded in Marcell, Minn., as All Seasons Vehicles by Polaris Industries and Arctic Cat founder Edgar Hetteen and Arctic Cat dealer Gary Lemke. The company moved to Grand Rapids in 1995 and today employs about 150 people.
The Star Tribune reported ASV is the first Minnesota company to go public since Tactile Systems Technology in July last year.
