RESTON, Va. - Bowman Consulting Group Ltd. (NASDAQ: BWMN), a national engineering and infrastructure services firm, has announced the pricing of its underwritten public offering at $34.00 per share. The offering consists of 1,323,530 shares sold by the company and 147,058 shares sold by certain executives, including President and CEO Gary Bowman and Executive VP and COO Michael Bruen.
Bowman expects to raise approximately $45.0 million in gross proceeds before deductions for underwriting discounts, commissions, and estimated offering expenses. The company has also given underwriters an option to purchase up to 220,588 additional shares. The closing date for the offering is anticipated to be April 1, 2024, pending customary conditions.
The net proceeds from the company's share of the offering are intended for general corporate purposes, which may include organic growth, potential acquisitions, and repayment of outstanding borrowings under its credit facility. The company will not receive proceeds from the sale of shares by the selling stockholders.
BofA Securities and Baird are the joint lead book-running managers for the offering, with Roth Capital Partners also serving as a joint book-running manager. D.A. Davidson & Co. and Craig-Hallum are involved as lead co-manager and co-manager, respectively.
The offering is made through a shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC) and effective since December 8, 2023. The offering is available only by prospectus supplement and accompanying prospectus, which are accessible on the SEC's website.
Bowman, headquartered in Reston, Virginia, operates over 90 offices across the United States and employs over 2,000 people. The firm offers a range of services including planning, engineering, geospatial, and environmental consulting to various regulated markets.
The information provided here is based on a press release statement.
InvestingPro Insights
As Bowman Consulting Group Ltd. (NASDAQ: BWMN) moves forward with its public offering, investors may be keen to understand the underlying financials and market sentiment towards the company. According to real-time data from InvestingPro, Bowman has a market capitalization of $601.25 million, indicating a moderate size within its sector. The company's recent revenue growth is noteworthy, with a 32.3% increase over the last twelve months as of Q4 2023 and a quarterly revenue growth of 22.96% in Q1 2023. This growth trajectory is reflected in the company's impressive gross profit margin of 50.84%, a figure that stands out in the industry and underscores Bowman's ability to manage costs effectively.
InvestingPro Tips suggest that analysts have a mixed outlook on Bowman's financial health. While the company is not profitable over the last twelve months, with a negative operating income margin of -0.31%, analysts predict Bowman will be profitable this year. The company also operates with a moderate level of debt, which may provide some financial flexibility as it pursues its growth strategies. On the trading front, Bowman has experienced a strong return over the last month, with a 22.08% increase, and an even more significant price uptick over the last six months of 44.4%, which could signal investor confidence in the firm's future prospects.
However, it's worth noting that Bowman is trading at a high EBITDA valuation multiple, which may suggest the stock is priced optimistically relative to its earnings before interest, taxes, depreciation, and amortization. Investors considering Bowman's stock may want to delve deeper into these metrics and consider the company's future earning potential and growth strategies.
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