Americold Realty Trust (NYSE:COLD), an Atlanta-based firm renown globally for its premium temperature-controlled storage services and products, is eyeing an IPO that some analyst estimate could reach a staggering $300 million. Recent filings made by the company and previous statements by its top executives show how seriously Americold is taking its forthcoming IPO, which could stand to ignite a new phase of expansive growth for the aspiring company.
Freezing out the competition
Even before news of its forthcoming IPO broke, Americold (NYSE: COLD) was renown internationally as the largest name in temperature-controlled storage. National and international investors alike have long eyed the company with envy, wondering when it would announce it’s going public, and it appears their wish is finally coming true; the company intends to market some 24 million shares at a price range of $14-16, and could raise well over $330 million if things go well.
Americold had considered going public in the past, but due to undesirable market conditions stemming largely from the 2008 financial crisis, it decided to temporarily shelf those ambitions. Now, however, with the US economy booming and consumer confidence at an all-time high, Americold executives have realized that they’re facing a premium opportunity to generate some serious capital that could aid future expansion efforts.
The company is incredibly ambitious about its forthcoming IPO, and intends to allow underwriters a 30-day option to purchase an additional 3,600,000 shares should things go well initially. Filings made by the company with the SEC seem to echo that ambition, as its executives view the coming years as full of opportunity to turn hefty profits. Risk factors for the company’s stock remain few and far between, and as the world’s leading owner of temperature-controlled warehouses, its stands to gain as international trade ticks up on the prospects of a strong American economy for the foreseeable future.
With more than a 1 billion cubic feet of storage, Americold is sure to freeze out any competitors hoping to oust it from its spot as the international leader in its industry anytime soon. With nine out of the 10 largest frozen food companies employing Americold to meet their storage needs, the company has massive influence within the food industry, and will give investors little reason to doubt it won’t be able to grow in the future.
A distinctly American company
Americold has another fantastic asset under its command, too; as the name implies, the company is distinctively American, with the vast majority of its warehouses being based in the continental US. Investors hoping to keep their money near their national interest will likely be attracted to Americold on those grounds alone, but can also rest assured that the company will have access to a pool of the best workers and investors anywhere in the world.
The company has stirred up regional media with the news of its IPO, and is likely to enjoy positive press in the broader national environment if it keeps employing large swathes of American workers. The media-hectic politics of today’s day and age may be vitriolic and explosive to some, but it goes without saying that companies focusing on keeping their products, workers, or warehouses in the United States are sure to generate positive feedback from today’s leading politicians alongside of eager investors.
With a fully diluted Vegas payday loan market that could reach a staggering $2 billion, too, it’s unlikely that Americold will find itself in want of capital and thus in needs to rebase its business operations overseas. The company is over 100 years old, and has long been a staple of US frozen food operations, a market that’s likely to growth in the forthcoming years.
The frozen food market generated an astonishing $51 billion USD in 2015 alone, and is expected to see revenues skyrocket in the coming decade, too. If Americold keeps its iron-tight grip on the existing US frozen food market, which it seems likely to do, it will benefit tremendously from that growth as its warehouses store the myriad of frozen meals American and international consumers alike love to chow down on.
As 2018 roars into full-gear, expect Americold’s IPO to be the first step in the company’s march towards continued success in the market. The cold, hard cash generated by the IPO will doubtlessly be used to secure its future as the leading temperature-controlled choice of major companies.